Online property information company Rightmove is to face a £1 billion claim for alleged abuse of a dominant market position in the latest opt-out group litigation to go before the Competition Appeal Tribunal.
The action, led by an accountant and former Competition and Markets Authority (CMA) panel member Jeremy Newman, will argue that Rightmove charged excessive and unfair prices to estate agents to list properties on its online portal. The damages from this practice are estimated to total around £1 billion.
Specialist litigation funder Innsworth Capital is funding the claim, which will be conducted by a team of lawyers and experts including US-based class action specialist Scott+Scott UK LLP, Kieron Beal KC of Blackstone Chambers and Kairos Economics.
Newman said: 'Rightmove knows that, due to its first-mover status, its product is considered a "must-have" for estate agents. It exploits its dominance of the online property portal market in the UK to charge excessively and unfairly high subscription fees, both at face value and when compared with its competitors. Estate agents have had to absorb consistent, excessive price increases on a regular basis.
'My case will seek to return the overpaid fees to estate agents across the country and to rebalance the relationship between Rightmove and the estate agents that use its online property portal.'
Innsworth managing director Ian Garrard said: 'Without the opt-out collective actions regime, it would be much harder – or even impossible – for SMEs to seek redress for anti-competitive behaviour. As a result of Innsworth’s funding – and at a time of considerable uncertainty for the opt-out regime – businesses within the class will not have to pay a penny towards the claim.'
In a statement, Rightmove said: 'Rightmove has received notice of a potential claim. We're confident in the value we provide to our partners. Further updates will be provided as appropriate.'
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