Thousands of UK estate agents are being invited to join a collective legal claim – at no cost – accusing Rightmove of abusing its dominant market position by charging excessive listing fees.
The property portal is reportedly facing an “imminent” legal challenge from thousands of UK estate agents who accuse the property portal of abusing its market dominance by charging unfair and excessive listing fees. Damages in the collective action are estimated at up to £1bn.
The claim is being led by Jeremy Newman, a former panel member of the Competition and Markets Authority (CMA), and alleges that Rightmove has leveraged its leading position in the online property listings market to impose inflated subscription prices on estate agents.
If successful, the lawsuit could mark one of the largest collective actions ever brought against a UK digital platform, potentially reshaping how property portals set their pricing structures.
Rightmove operates at a profit margin of around 70%, the highest in the FTSE 100.
The case, fully funded by specialist litigation funder Innsworth Capital and supported by law firm Scott+Scott UK LLP and economists from Kairos Economics, will be filed on behalf of thousands of agents on an opt-out basis. Any UK estate agent that has paid fees to Rightmove in the last six years will automatically be included in the action unless they choose to opt out.
“Rightmove knows that its product is considered a ‘must-have’ for estate agents,” said Jeremy Newman. “It exploits that dominance to charge excessively and unfairly high fees. This case will seek to return overpaid sums to estate agents and restore balance to the relationship between agents and the platform.”
Innsworth Advisors MD, Ian Garrard, believes the case was about “levelling the playing field for businesses up and down the country” and that agents joining the claim “will not have to pay a penny” toward the legal costs. No date or timeframe was given for the potential filing.
Rightmove has just issued a statement acknowledging press speculation relating to a potential claim against the company.
It states: “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.”
Rightmove’s fees account for up to 13.5% of an estate agency’s sales commission – analysis
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