Rightmove, the UK’s largest property listing portal, is facing a £1.5 billion ($2 billion) lawsuit filed in the Competition Appeal Tribunal by estate agents. The claim accuses the company of abusing its dominant market position by imposing excessive subscription fees on estate agents and developers. Following the announcement, Rightmove’s shares dropped by nearly 9% on Wednesday.
The lawsuit is spearheaded by Jeremy Newman, a former member of the Competition and Markets Authority (CMA) panel. Notably, the claim was initially revealed in November with a lower valuation of £1 billion. Rightmove has acknowledged the lawsuit but dismissed the allegations as unfounded, asserting its commitment to delivering value to its partners and consumers through its digital platform and business solutions.
Since the claim’s inception, over 250 estate agencies across the UK have shown interest and support for the legal action. Newman highlighted the strong backing from estate agents, describing the response as highly encouraging.
The UK property market has been struggling with declining demand and sales in recent years. These challenges have been exacerbated by the ongoing conflict in the Middle East, which has contributed to rising costs and the likelihood of sustained higher interest rates.
The lawsuit is fully financed by Innsworth Capital and is supported legally by Scott+Scott UK LLP, underscoring the seriousness of the claim against Rightmove.
