A £1.5 billion legal claim has been filed against Rightmove at the Competition Appeal Tribunal, alleging the property portal abused its market position by charging estate agents excessive subscription fees.
The action, brought by Jeremy Newman, a former panel member of the Competition and Markets Authority, claims Rightmove exploited its dominant position in the UK property portal market to impose unfair pricing on estate agents.
More than 250 estate agencies across the UK have expressed interest in supporting the claim since it was first announced. Rightmove received a pre-action letter in November last year informing the company of the impending legal action.
Allegations of market dominance
Newman stated: “There has been an extremely encouraging response from estate agents since we announced this legal action. The stories shared by businesses, both small and large, have confirmed long-held concerns in the market about Rightmove’s conduct.”
He added: “Filing this claim today advances the route to meaningful compensation for those businesses who have had very little choice but to absorb excessive fee increases for many years.”
James Hain-Cole, Partner at Scott+Scott, the law firm representing the claimants, said: “For years, thousands of businesses have been captive customers of Rightmove, which faces no effective competition. It’s therefore been allowed to financially squeeze its subscribers by consistently and materially raising prices without proper justification or explanation.”
Industry implications
The legal action comes at a time when the property industry faces various regulatory challenges. While councils are seeking additional funding to address property-related issues, estate agents are increasingly scrutinising their operational costs.
The claim alleges that Rightmove’s pricing practices have placed financial pressure on agencies of all sizes. The legal proceedings will examine whether the portal’s fee structure violated competition law during the period in question.
The outcome of this case could have significant implications for the UK property portal market and the broader relationship between platform operators and their business customers. Estate agents who believe they have been affected by the alleged pricing practices can register their interest through the claims website.