The Federal Trade Commission filed an administrative complaint and kicked off a federal lawsuit to block CoStar’s proposed acquisition of RentPath, CO reported. The government alleges that CoStar’s $588 million acquisition of RentPath would “significantly increase concentration in the already highly concentrated markets for internet listing services advertising for large apartment complexes.”
- Dig Deeper: The complaint alleges that 70 percent of apartment complexes with 200 or more units and 40 percent of buildings with 100 to 199 units advertise on internet listing services operated by CoStar or RentPath.
- Flashback: RentPath entered Chapter 11 bankruptcy in February, and CoStar announced its plans to acquire the rental platform operator in an all-cash sale the same day. [CO]