The Competition Appeal Tribunal (CAT) is hearing arguments today on whether a £1.5 billion legal action against Rightmove can proceed as a collective claim on behalf of thousands of estate agents.
The case, led by former Competition and Markets Authority panel member Jeremy Newman, alleges that Rightmove abused its dominant market position by charging excessive and unfair fees to estate agents across the UK.
Group claim decision
The hearing will determine whether the case can move forward as a group claim rather than requiring individual agents to bring separate legal actions. A judgement is not expected this week and typically takes several months to be issued.
Newman said ahead of the hearing: “Any alternative would be a serious obstacle for small and medium-sized businesses, and few (if any) can justify the time, cost and risk of bringing a claim alone, or of joining an opt-in claim. The result would be fewer businesses compensated and higher legal costs. That helps only Rightmove.”
Market implications
The outcome could have significant implications for the UK property sector, particularly for smaller agencies that have faced rising operational costs. The case comes at a time when UK house price growth has slowed, putting additional pressure on estate agents’ revenues.
Rightmove disclosed in its annual report earlier this year that it expects to spend £2.3 million on legal costs related to the lawsuit. The portal maintains its position that the claim is without merit.
In a statement, Rightmove said: “Rightmove is confident in the value we provide to our partners and consumers, who are at the core of our business solutions and digital platform. As one of the most efficient parts of the UK housing market, we help people across the UK to move home by bringing buyers, sellers, renters, landlords and agents together. This claim is without merit, and we will defend it vigorously.”
Industry context
The legal action represents one of the largest competition claims in the UK property sector. If successful, it could result in compensation payments to estate agents who have used Rightmove’s services during the relevant period.
The hearing, which can be viewed live on the CAT website from 10.30am, will see both sides present arguments on whether the certification for a collective proceedings order should be granted. The decision will determine whether thousands of estate agents can pursue their claims collectively or whether they would need to take individual legal action against the property portal.
