£1bn opt-out action alleges Rightmove charged unfairly high fees to estate agents
Rightmove is to face a £1 billion competition claim alleging that it abused a dominant market position by charging estate agents excessive and unfair fees. The opt-out collective action, announced in the latest filing before the Competition Appeal Tribunal, has been brought by Jeremy Newman, an accountant and former panel member of the Competition and Markets Authority.
The claim centres on the fees charged for listing properties on Rightmove’s online portal. According to the case documents, the subscription prices imposed on estate agents form the basis of the damages estimate, which totals around £1 billion. The action alleges that Rightmove relied on what Newman describes as its “first-mover status” and the perception that its product is a “must-have” for estate agents.
Newman said the claim will argue that Rightmove “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”. He added that estate agents have absorbed “consistent, excessive price increases on a regular basis”. The purpose of the claim, he said, is “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”.
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Litigation funder Innsworth Capital is financing the action. The claim will be conducted by a legal and expert team that includes class action specialists Scott+Scott UK LLP, Kieron Beal KC of Blackstone Chambers and Kairos Economics. Innsworth’s managing director, Ian Garrard, said the opt-out collective actions regime was essential to enable small and medium-sized enterprises to seek redress where allegations of anti-competitive behaviour arise. He said that without this regime “it would be much harder – or even impossible – for SMEs to seek redress for anti-competitive behaviour”. According to Garrard, participating businesses “will not have to pay a penny towards the claim” due to the funding arrangement.
Rightmove confirmed that it has received notice of a potential claim. In response to the announcement, it said: “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.” The company did not comment further on the substance of the allegations or the proposed collective action.
The filing follows a series of high-profile opt-out claims issued in the Competition Appeal Tribunal in recent years, reflecting the continued expansion of collective competition litigation in the UK. The case brought against Rightmove will need to obtain certification before proceeding, a process through which the tribunal assesses whether the claim meets the statutory requirements for collective proceedings.
If certified, the action will represent one of the largest competition claims pursued in the property sector. Estate agents across the UK would automatically fall within the class unless they choose to opt out, while those based outside the UK would need to opt in. The claim asserts that estate agents have been required to pay fees that were both excessive and unfair under competition law principles, with financial redress sought for the alleged overcharging.
The Competition Appeal Tribunal will determine the procedural next steps once the case has been considered for certification. Rightmove has stated that it intends to provide updates “as appropriate” as the process progresses.