Property portal Rightmove is facing a substantial legal challenge amid accusations it charges thousands of UK estate agents "unfair and excessive" fees. A group bringing the claim estimates potential damages could total around £1 billion.
The case, led by Jeremy Newman, a former panel member for the UK’s competition watchdog, is set to be heard by the Competition Appeal Tribunal. Mr Newman affirmed the action will "seek to return the overpaid fees to estate agents across the country".
He accused the firm of actions that "exploits its dominance of the online property portal market in the UK to charge excessively and unfairly high subscription fees, both at face value and when compared with its competitors". "Estate agents have had to absorb consistent, excessive price increases on a regular basis," he added.
Thousands of estate agents will be represented in the legal action unless they choose to opt out. In a statement to investors, Rightmove said it had "received notice of a potential claim", adding: "We’re confident in the value we provide to our partners."
Based on the estimated total damages and size of the class action, it is understood that the claim assumes agents can be charged thousands of pounds in fees to use Rightmove. The firm has previously come under scrutiny, with a petition gaining more than 2,000 signatures earlier this year calling for an investigation into its pricing model.
The case is being funded by specialist litigation funder Innsworth Capital Limited. Rightmove says it has the UK’s largest selection of properties for sale and to rent, with around 80 per cent of all time spent on property portals being on its site. The FTSE 100-listed firm made a pre-tax profit of £146.5 million over the six months to the end of June.
