Rightmove has been accused of charging unfair and excessive prices to several thousand UK estate agents, with people behind the accusations claiming the damages in imminent legal action could total around £1 billion.
The legal action, led by former Competition and Markets Authority (CMA) panel member Jeremy Newman, will argue that Rightmove abused its dominant position in the online property portal market by charging excessive and unfair prices to estate agents to list properties on its online portal. The damages from this practice are estimated to total around £1 billion.
Those behind the action claim that according to its own 2024 accounts, Rightmove’s profit margin is around 70%, making it the most profitable company in the FTSE 100.
A statement from Newman says agencies across the UK will be represented on an opt-out basis.
Newman’s case against Rightmove is fully funded by specialist litigation funder Innsworth Capital Limited, and he says: “Rightmove knows that, due to its first-mover status, its product is considered a ‘must-have’ for estate agents. It 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.
“My case will seek to return the overpaid fees to estate agents across the country and to rebalance the relationship between Rightmove and the estate agents that use its online property portal.”
Ian Garrard, Managing Director of Innsworth Advisors says: “Jeremy’s claim is about levelling the playing field for businesses up and down the country, deterring anti-competitive behaviour and correcting the imbalance between big and small in the property sector. Without the opt-out collective actions regime, it would be much harder – or even impossible – for SMEs to seek redress for anti-competitive behaviour.
“As a result of Innsworth’s funding – and at a time of considerable uncertainty for the opt-out regime – businesses within the class will not have to pay a penny towards the claim.”Rightmove has just issued a statement acknowledging press speculation relating to a potential claim against Rightmove.
The portal has issued a holding statement saying: “Rightmove has received notice of a potential claim. We’re confident in the value we provide to our partners. Further updates will be provided as appropriate.”
