The suit alleges that Rightmove set unreasonable prices for estate agents to list properties
Accountant and ex-UK Competition and Markets Authority panel member Jeremy Newman has filed a £1 billion class action against UK property company Rightmove, reported the Law Society Gazette.
The suit is set to accuse Rightmove of setting unreasonably high prices for estate agents to list properties on its digital portal. Per the action, estimated damages will hit £1 billion.
The opt-out group litigation will be conducted by a team that includes lawyers and experts from class action boutique Scott+Scott UK LLP, Blackstone Chambers’ Kieron Beal, and Kairos Economics. The claim will be financed by litigation funder Innsworth Capital.
Innsworth managing director Ian Garrard said in a statement published by the Gazette that the opt-out collective actions regime enabled small and medium-sized enterprises to seek remedies for anti-competitive behavior.
“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,” Newman said in a statement published by the Gazette. “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.”
Rightmove confirmed that it had received notice of a potential claim. The Competition Appeal Tribunal will handle the class action.
Rightmove’s shares fell recently by a maximum of 28 percent after it announced that it was ramping up its AI investment. Per BBC News, it is set to inject £60 million over three years towards this and other initiatives to bolster returns.
Rightmove said it expected its AI focus to generate a return in this period and that its operating profit would bounce back after 2028.
