Rightmove faces proposed £1.6bn class action over UK listing fees

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Rightmove £1.6bn class action

Highlights

Rightmove faces a proposed £1.6bn class action as claimant Jeremy Newman alleges estate agents fear retaliatory consequences for participating as witnesses.
The Competition Appeal Tribunal hears disputes over evidence disclosure, with Rightmove seeking agent identities while Newman offers communication extracts with redactions.
The case challenges Rightmove's pricing power in the UK property portals market, where it captures over 80 percent of consumer browsing time and boasts FTSE 100-leading margins.

Tribunal hearing examines evidence concerns

As first reported by Financial Times, lawyers for claimant representative Jeremy Newman told the Competition Appeal Tribunal on Thursday that a significant number of estate agents they approached fear adverse commercial consequences if they provide evidence against Rightmove.

Newman, a former panel member at the Competition and Markets Authority, is seeking to bring the case on an opt-out basis, arguing that an opt-in process would not be practicable because some agents worry their relationship with the property portal could be jeopardised if their identities become public or linked to the claim.

In a witness statement, Newman says agents express concern about possible retaliatory conduct from Rightmove. Rob Williams KC, representing Rightmove, tells the tribunal the company completely rejects that suggestion, saying it views agents as partners and that retaliation would amount to shooting itself in the foot.

Rightmove’s legal team is also seeking disclosure of communications between Newman and agents so it can test the strength of the evidence. The tribunal hears that Newman agrees to disclose some communications with identities redacted, while Rightmove argues it needs names, potentially within a lawyers-only confidentiality ring, a proposal Newman’s lawyers dismiss as fanciful.

Case tests pricing power in UK property portals

Substantive arguments on whether Rightmove levies excessive and unfair listing charges are not addressed at the preliminary hearing, but the case goes to the heart of the company’s role in the UK residential sales and lettings market.

Rightmove accounts for more than 80 per cent of the time consumers spend on UK property portals, according to Comscore data cited by the company. Newman has previously argued that estate agents have had to absorb consistent and excessive price increases, helping Rightmove generate the widest profit margins in the FTSE 100.

The case is being financed by Innsworth Advisors, the litigation funding arm of U.S. hedge fund Elliott. Rightmove has previously said the claim is without merit and that it is confident in the value it provides to partners and consumers through its business solutions and digital platform.

Our previous coverage of parliamentary scrutiny over the Financial Reporting Council chair appointment explained how MPs withheld endorsement for the government’s preferred candidate, Dame Jayne-Anne Gadhia, citing a lack of clarity on audit reform, audit-market competition, and the regulator’s statutory footing. We noted that prolonged delays to audit reform have left the FRC’s future powers uncertain, making the leadership decision more consequential for the UK’s regulatory direction.

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