Estate agents are expressing concern about potential commercial repercussions if they provide evidence in a £1.5 billion class action lawsuit against Rightmove, according to testimony presented at the Competition Appeal Tribunal.
Lawyers representing the claimants stated during the first hearing that a “significant number” of agents are worried about “adverse commercial consequences” should they participate in the legal proceedings.
Class action details
The claim has been brought by Jeremy Newman, a former panel member of the Competition and Markets Authority and director of the Clarion Housing Group. Since the action was announced in November last year, more than 250 estate agencies across Britain have reportedly expressed support for the claim.
The lawsuit alleges that Rightmove abused its position as the dominant property portal by charging estate agents “excessive” and “unfair subscription fees”. The action is being taken on behalf of thousands of agents who claim they were overcharged by the platform.
Concerns over commercial relationships
According to the Financial Times, Newman said in a witness statement that estate agents had “expressed a concern that they might face retaliatory conduct from Rightmove or that their commercial relationship with Rightmove would be jeopardised should their name be made public or associated with the claim”.
The property industry has seen recent senior appointments across major firms, reflecting ongoing changes in the sector’s competitive landscape.
Rightmove’s response
A barrister representing Rightmove told the tribunal that the company “completely rejects the suggestion”. He stated that Rightmove “sees them [agents] as partners”, and “it would be shooting itself in the foot” if it retaliated.
A Rightmove spokesperson stated: “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.”
The spokesperson added: “Rightmove completely rejects the idea that we would retaliate against any agents who engaged with Mr Newman’s proposed class action. Our business is built on long-term commercial partnerships with estate agents. Those relationships are based on direct engagement, transparency and a shared understanding of the services we provide.”
The company stated that the claim is “without merit” and that it will “defend it vigorously”.
Market implications
The case highlights tensions in the UK property sector, where estate agents rely heavily on portal listings to reach potential buyers and renters. The outcome could have significant implications for how property portals price their services and interact with agents across the industry.
The tribunal hearing represents the first formal stage in what could be a lengthy legal process affecting thousands of estate agencies nationwide.
