Good morning. The Justice Department and eight states on Friday sued real-estate software company RealPage, accusing it of deploying a rent-setting algorithm that allows landlords to illegally coordinate price increases.

• A novel enforcement action. The complaint is one of the most sweeping legal actions ever taken by the federal government against a private company in the rental housing industry. The civil suit, filed in the Middle District of North Carolina federal court, alleges that RealPage stifles competition through its algorithm and maintains an illegal monopoly over rent-setting software.
   
• What is RealPage? The company commands an 80% market share in commercial revenue management software, the Justice Department said. The suit focuses on two of RealPage’s pricing systems that are used by landlords overseeing about three million units.
   
• Algorithmic pricing concerns. The Justice Department action is the latest sign that federal and local governments are pursuing a more aggressive stance on regulating Wall Street and other large institutions’ role in the housing market. Many renters are still feeling the pinch from the steep rent increases that occurred during the pandemic, and Americans have frequently cited the high cost of housing as among their chief concerns.
   
• Company fires back. RealPage has rebuffed allegations that it helps landlords collude. The company says that its landlord customers aren’t required to use its price recommendations and that its software can recommend lowering rents. The units owned by the users of its price-setting systems are a relatively small portion of the overall rental market, RealPage says.

France detains Telegram CEO, fanning tensions with Russia.

Pavel Durov, the founder and chief executive of the popular Telegram messaging app, was detained in Paris by French authorities on Saturday night, a French official said, fueling new tensions with Moscow.

Durov’s detention comes amid growing concern in Europe about Telegram’s use by pedophiles, drug traffickers and other criminals. French media reported that his detention was related to an investigation opened into Telegram’s role in spreading child pornography and the platform’s alleged refusal to cooperate with authorities in cracking down.

U.S. unveils more sanctions targeting Russia’s supply chains.

The U.S. Treasury Department imposed fresh sanctions targeting hundreds of entities Friday, saying it wants to hobble Russia’s supply chains and crack down on channels that the Kremlin is using to evade the existing measures, Risk & Compliance Journal's Richard Vanderford reports.

The new sanctions, which came a day ahead of Ukrainian Independence Day, target a number of transnational networks Russia uses to obtain weapons, procure complex technology and fund its war machine.

• The Food and Drug Administration is ramping up its investigation of the clinical trials that tested an Ecstasy-based therapy, after the agency earlier rejected the application for its approval.

The West’s next challenge: a rising axis of autocracies.

The coalescing partnership of autocracies led by China and Russia will impose strategic choices on Western democracies, no matter who wins the U.S. presidential election.

Can the U.S. and its allies deter all these rivals—including Iran and North Korea—at the same time, given the decay in the West’s military-industrial base and the unwillingness of voters to spend dramatically more on defense?

And if not, should, and could, an accommodation be sought with one of the rival great powers? If so, which one—and at what cost?

• SpaceX is set to orchestrate the first-ever spacewalk involving private citizens, an operation that will count as one of the company’s riskiest.
   
• Ernst & Young said it is cutting ties with many U.S. public companies as audit clients, a move to revamp its audit practice and improve the quality of its work.
   
• Air Canada pilots plan to picket at major airports across the country as negotiations over a new pay deal get more fractious and the possibility of a strike looms.
   
• Canadian rail workers will end their work stoppage after the country’s labor-relations board sided with a federal government.
   
• Nestlé’s chief executive was pushed out of the company and learned he would be losing his job just 24 hours before it was announced publicly.

Halliburton hit by cyberattack.

Oilfield-services company Halliburton has joined the growing ranks of firms hit by cyberattacks.

In a filing with the Securities and Exchange Commission, Halliburton said it has discovered that an unauthorized party had gained access to some of its systems, and the Houston company has taken some systems offline to help protect them.

Halliburton said it has also launched an internal investigation, with the support of external advisers, to assess and remediate the unauthorized activity, and that it has notified law enforcement.

• After a heavy exchange of fire early Sunday between Israel and Iran-backed Shiite militia Hezbollah, the regional military powers signaled a desire to avoid a spiral that could lead to a wider Mideast conflict.
   
• Kyle, Texas is the second-fastest-growing city in the U.S. The influx of people is creating wealth but also contributing to a big problem: Kyle is getting hotter and running low on water.
   
• Italian prosecutors announced an investigation into manslaughter and causing a shipwreck by negligence as they try to reconstruct how the superyacht Bayesian sank off the coast of Sicily on Monday, killing seven people on board including the British tech mogul Mike Lynch.
   
• Police said they had detained a suspect in a stabbing attack that killed three and wounded eight in Germany on Friday. Authorities are treating the attack, claimed by Islamic State, as a terror act.
   
• Tether, the company that owns one of the world’s most popular cryptocurrencies, is on an investing spree. It has been aided by a German investor whose deal introductions have had mixed results.

Follow us on X at @WSJRisk. Follow Risk & Compliance editor David Smagalla @DSmagalla_DJ and reporters Mengqi Sun @_MengqiSun, Dylan Tokar @dgtokar and Richard Vanderford @VanderfordRich.

You can reach us by replying to any newsletter, or email David at david.smagalla@wsj.com.