To use the search feature, we need your consent to load Google Custom Search, which may use cookies or similar technologies. Please click 'Allow and Continue' below to enable search. See our privacy policy for more information.
Business | Business News
Sign up for our email featuring expert insight and funding opportunities for entrepreneurs and SMEs
I would like to be emailed about offers, event and updates from Evening Standard. Read our privacy notice.
Rightmove is set to face legal action over accusations that it charges unfair and excessive fees to thousands of UK estate agents.
A group making a claim against the property website estimated that damages could total around £1 billion.
The case, which is being led by former panel member for the UK’s competition watchdog Jeremy Newman, is due to be brought to the Competition Appeal Tribunal.
Mr Newman said the claim will “seek to return the overpaid fees to estate agents across the country”.
He accused the firm of actions that “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,” he added.
Thousands of estate agents will be represented in the legal action unless they choose to opt out.
In a statement to investors, Rightmove said it had “received notice of a potential claim”, adding: “We’re confident in the value we provide to our partners.”
Based on the estimated total damages and size of the class action, it is understood that the claim assumes agents can be charged thousands of pounds in fees to use Rightmove.
Rightmove has previously come under scrutiny with a petition gaining more than 2,000 signatures earlier this year calling for an investigation into its pricing model.
The firm has been accused of squeezing small businesses and independent agencies with fees that are higher than what corporate chains pay.
Why does Sky want to buy ITV’s television business?
Student landlord Empiric says fewer Chinese students staying in UK
Britons at growing risk of rogue traders due to AI, Checkatrade boss says
Get ahead with expert services designed to boost business development
Mr Newman was formerly a panel member on the Competition and Markets Authority (CMA), which investigates markets, companies, and business deals if there are concerns that their might be unfair or anti-competitive behaviour.
The case is being funded by specialist litigation funder Innsworth Capital Limited.
Rightmove says it has the UK’s largest selection of properties for sale and to rent, with around 80% of all time spent on property portals being on its site.
The FTSE 100-listed firm made a pre-tax profit of £146.5 million over the six months to the end of June.
MORE ABOUT
1
Showbiz
Kirsty Gallacher says judge has ‘no empathy’ after being banned from driving for speeding
Kirsty Gallacher says judge has ‘no empathy’ after driving ban
2
UK
Iconic UK lager to reduce its alcohol content after fall in sales
Iconic UK lager to reduce its alcohol content after fall in sales
3
Football
Nigeria: Wilfred Ndidi faces World Cup play-off final ban amid Victor Osimhen suspension risk
Nigeria star set for ban as Osimhen emerges as new suspension risk
4
Football
Victor Osimhen reveals key message to Nigeria team-mates before extra-time goals as World Cup dream lives on
Osimhen reveals message to Nigeria team-mates before extra-time goals
5
Property News
From Hollywood to Hampstead: Ryan Gosling and Eva Mendes, Zoë Kravitz and Zendaya join the A-list exodus
A very A-list exodus: the US stars swapping Hollywood for Hampstead