Rightmove Faces £1.5bn Class Action Over ‘Excessive’ Fees

Rightmove, the UK's leading online property portal, is facing a substantial class action lawsuit alleging it has charged thousands of estate agents and new home developers excessive and unfair subscription fees. The claim, filed in the Competition Appeal Tribunal, seeks just under £1.5bn in damages.

Allegations of Market Dominance

Accountant Jeremy Newman, who initiated the action, contends that Rightmove has "abused a dominant position" within the online property portal market. Estate agents report that fees have more than doubled in recent years, with little corresponding increase in services, while simultaneously grappling with stagnant property prices.

Newman, a former Competition and Markets Authority (CMA) panel member, stated, "Rightmove is exploiting a self-evident dominant market position, and are charging too much for it." He suggests that the high fees force agents to reduce staff, potentially impacting service quality. Rightmove consistently reports profit margins of around 70%, making it one of the most profitable companies in the FTSE 100, and its own research indicates an 80% share of time spent on property portals.

Rightmove's Defence and Agent Perspectives

In response, Rightmove has asserted that the claim is "without merit, and we will defend it vigorously." A spokesperson for the company affirmed, "We are confident in the value we provide to our partners and consumers, who are at the core of our business solutions and digital platform." The company highlights its role in facilitating market transparency and liquidity.

However, many agents express a sense of being compelled to use Rightmove due to its market penetration. Alisa Zotimova, founder of AZ Real Estate, noted her fees have "more than doubled" in seven years, describing the rise as "unsustainable." She believes that if smaller agents cannot afford these fees, it could lead to higher costs for consumers and reduced choice of agents.

Conversely, some agents, like Andy Keogh from the Midlands, acknowledge Rightmove's dominant position but believe it offers "value for money," attributing 80% of his leads to the platform. Despite impending fee increases, he suggests agents who "moan" would struggle without its reach.