New limits for a rent algorithm that prosecutors say let landlords drive up prices

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By R.J. RICO, Associated Press

Landlords could no longer rely on rent-pricing software to quietly track each other’s moves and push rents higher using confidential data, under a settlement between RealPage Inc. and federal prosecutors to end what critics said was illegal “algorithmic collusion.”

The deal announced Monday by the Department of Justice follows a yearlong federal antitrust lawsuit, launched during the Biden administration, against the Texas-based software company. RealPage would not have to pay any damages or admit any wrongdoing. The settlement must still be approved by a judge.

RealPage software provides daily recommendations to help landlords and their employees nationwide price their available apartments. The landlords do not have to follow the suggestions, but critics argue that because the software has access to a vast trove of confidential data, it helps RealPage’s clients charge the highest possible rent.

“RealPage was replacing competition with coordination, and renters paid the price,” said DOJ antitrust chief Gail Slater, who emphasized that the settlement avoided a costly, time-consuming trial.

Under the terms of the proposed settlement, RealPage can no longer use that real-time data to determine price recommendations. Instead, the only nonpublic data that can be used to train the software’s algorithm must be at least one year old.

“What does this mean for you and your family?” Slater said in a video statement. “It means more real competition in local housing markets. It means rents set by the market, not by a secret algorithm.”

RealPage attorney Stephen Weissman said the company is pleased the DOJ worked with them to settle the matter.

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“There has been a great deal of misinformation about how RealPage’s software works and the value it provides for both housing providers and renters,” Weissman said in a statement. “We believe that RealPage’s historical use of aggregated and anonymized nonpublic data, which include rents that are typically lower than advertised rents, has led to lower rents, less vacancies, and more procompetitive effects.”

Over the past few months, more than two dozen property management companies have reached various settlements over their use of RealPage, including Greystar, the nation’s largest landlord, which agreed to pay $50 million to settle a class action lawsuit, and $7 million to settle a separate lawsuit filed by nine states.

The governors of California and New York signed laws last month to crack down on rent-setting software, and a growing list of cities, including Philadelphia and Seattle, have passed ordinances against the practice.

Ten states — California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee and Washington — had joined the DOJ’s antitrust lawsuit. Those states were not part of Monday’s settlement.

Protesters gather near suspected ICE operation on St. Paul’s East Side

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A crowd of protesters has formed in the 600 block of Rose Avenue in St. Paul, where it appears federal authorities may be conducting an enforcement action at a residential address. One person was removed from a home on a stretcher.

The St. Paul Police Department and St. Paul Fire Department are on scene, as are agents wearing federal Homeland Security Investigations gear.

The residential block sits near the intersection of Payne and Maryland avenues. On social media, the Immigrant Defense Network alerted activists to an “ICE raid,” though details have yet to be confirmed.

A crowd has formed a line behind the house, while a larger group of protesters is assembled out in front of it. Some St. Paul Police officers are wearing helmets and carrying police batons in hand.

St. Paul City Council Vice President HwaJeong Kim was speaking with a growing crowd of protesters as of 11:45 a.m., urging them to stay calm and not intervene when and if someone exits the residence to be transported into detention.

“We have a finite window of time,” Kim told the crowd. “Everyone needs to stay calm. … You’re fighting on the right side of history. Right now we’re working with that person to work with lawyers. … The options right now are one person voluntarily leaving this house. We can’t speak for the other people on the property. Allegedly, there is someone with child and a young child in the house. Right now there is someone who is voluntarily choosing to leave this property. … They are connected to legal services. They are connected to advocate groups. … When and if this happens, please stay calm. Please try not to intervene.”

This is a developing story. Check back with twincities.com for updates. 

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China launches Shenzhou 22 spacecraft to assist in return of 3 astronauts stranded on space station

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BEIJING (AP) — China launched the Shenzhou 22 spacecraft on Tuesday to help bring back a team of astronauts after a damaged spacecraft left them temporarily stranded on China’s space station.

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The Shenzhou 22, which successfully docked at the Tiangong space station Tuesday, will be used sometime in 2026 by the three astronauts who arrived on Nov. 1.

Earlier this month, another group of Chinese astronauts from the Shenzhou 20 mission faced a nine-day delay in their return to Earth after their craft’s window was damaged. They eventually returned using the Shenzhou 21 spacecraft, which had just carried the replacement crew to Tiangong.

While the three-person crew landed safely on Earth, three of their fellow astronauts on the replacement crew were temporarily left without a guaranteed way to return in case of an emergency.

The Shenzhou 20 spacecraft — the damaged one, which for now remains in space — will be brought down to Earth later and assessed, according to state broadcaster CCTV. The space program determined it didn’t meet safety standards for transporting the astronauts.

Chinese astronauts have been carrying out missions to the Tiangong space station in recent years as part of Beijing’s rapidly progressing space program, initially building out the station module-by-module.

China developed Tiangong after the country was excluded from the International Space Station over U.S. national security concerns, since China’s space program is controlled by its military.

Tiangong, which means “Heavenly Palace,” hosted its first crew in 2021. It is smaller than the International Space Station, which has been operating for 25 years.

The European Union votes to deepen defense industry ties with Ukraine

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By SAM McNEIL, Associated Press

BRUSSELS (AP) — European Union lawmakers voted on Tuesday to deepen integration of the bloc’s defense industry with Ukraine as a U.S. peace plan remains in flux and Russia’s unconventional warfare operations rattle the 27-nation bloc.

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European Parliament legislators voted 457-148, with 33 abstentions, to approve a 1.5-billion euro ($1.7 billion) program, with 300 million euros ($345 million) slated for the Ukraine Support Instrument.

Raphaël Glucksmann, an EU lawmaker from France’s S&D party, said that the defense program “will enable us to build a more resilient and sovereign Europe” through partnering with Ukraine to build a cutting-edge military industrial complex.

“This is key to making sure we can protect our democracies effectively and autonomously,” he said.

Ukraine’s defense industry “needs us,” EU Defense Commissioner Andrius Kubilius told EU lawmakers before the vote in Strasbourg, France, without mentioning the ongoing peace negotiations to end the war. “But we need Ukraine’s defense innovations even more.”

He said that allowing Ukrainian access to the EU’s Defence Investment Program “makes it possible to procure defense equipment in, with and for Ukraine.”

EU defense spending is expected to total around 392 billion euros (more than $450 billion) this year, almost double the amount of four years ago, before Russia launched its full-scale invasion of Ukraine on Feb. 24, 2022.

The Trump administration has signaled that it’s prioritizing U.S. security on its own domestic borders and in Asia. It has told Europeans that they must fend for themselves and Ukraine in the future.

Born out of the carnage of the two world wars, the EU started as a trading bloc designed to avert conflict. But Russia’s war in Ukraine has spurred a shift in the Brussels-based bloc, heightening its defense and security posture.

The European Commission, the EU’s executive branch, believes that about 3.4 trillion euros ($4 trillion) will probably be spent on defense over the next decade. To help, it intends to propose boosting the EU’s long-term budget for defense and space to 131 billion euros ($153 billion).

“We shall be powerful geopolitically if we shall be strong in our defense, and we shall be strong in defense if we shall be strong in our defense industry, and if we shall be strong in our defense industry, we shall be industrially independent, autonomous and much less fragmented,” Kubilius said.

EU member countries are being urged to buy much of their military equipment within the bloc, working mostly with European suppliers — in some cases with EU help to cut prices and speed up orders. Under the road map, EU nations should only purchase equipment from abroad when costs, performance or supply delays make it preferable.

Kubilius said that EU-based defense companies can apply for tax breaks and other financial incentives to fund so-called European defense projects of common interest that “no member state can ever build alone, but that will protect the whole of Europe,” like Eastern Flank Watch, Drone Defense Initiative or Space Shield.

Permitting Ukrainian companies to participate in these projects “allows us to inject Ukrainian military innovation in the European defense industry,” he said.

Last week, the European Commission rolled out a new defense package to allow tanks and troops to deploy more rapidly across Europe as well as the EU Defense Industry Transformation Roadmap, which aims to simplify and unify regulations on the EU’s defense industry, and corral investment into domestic production of weapons, vehicles, satellites, shells and bullets.

Before the vote, Kubilius said that the defense program is meant to make sure big nations cannot seize territories of weaker nations.

“My country Lithuania was really a victim of such previous policies prevailing in the European continent,” he said, referring to the Soviet occupation of Lithuania for 50 years. “That is why I am for a strong Europe and a strong European defense industry.”