The U.S. government is trying for a second time to limit the steady expansion of real-estate data giant CoStar Group Inc., by moving to block its latest proposed acquisition in the rental apartment listing business.
The Federal Trade Commission last week authorized a federal lawsuit against CoStar’s plan to acquire RentPath Holdings Inc. for $587.5 million, which the company announced in February. CoStar already owns Apartments.com which, like RentPath, is a big player in the online market for apartment listings.
“The proposed acquisition is likely to lead to anticompetitive effects,” states the Commission complaint.
In a written statement responding to the FTC, CoStar Chief Executive Andrew Florance questioned whether RentPath was still a major market force, given that it is operating under chapter 11 bankruptcy protection. RentPath’s owners, private-equity firms TPG Capital and Providence Equity, took the company into bankruptcy at the same time the proposed sale to CoStar was announced.
“We strongly disagree that a RentPath in bankruptcy has any competitive significance,” Mr. Florance said. “We will continue to evaluate the case.”
