Rightmove Faces Billion Pound Lawsuit Over Portal Fees

Rightmove, the UK’s leading online property portal, is facing a £1 billion legal action initiated by thousands of estate agents who allege the company imposes excessive fees for property listings. The claim, to be filed in the High Court, seeks the return of what agents contend are overpaid subscription charges. Jeremy Newman, a former panel member of the Competition and Markets Authority, leads the group seeking restitution on behalf of estate agents nationwide, unless they elect to opt out.

According to Mr Newman, Rightmove leverages its dominant position in the online property marketplace to enforce consistently high and unfair price increases. He asserts that Rightmove’s established reputation makes it indispensable for agents, allowing the company to exploit its market standing through unfavourable fee structures when compared with its rivals.

The legal proceedings are being funded by Innsworth Advisors, a subsidiary of US hedge fund Elliott, which is overseen by billionaire Paul Singer. Rightmove has acknowledged receipt of notice regarding the potential claim and maintains that it provides significant value to its partners. The company asserts it hosts the country’s largest selection of properties for sale and to rent, citing that 80 percent of all consumer time on British property portals is spent on its platforms.

Analyst Anthony Codling of RBC Capital Markets described estate agents’ dissatisfaction with Rightmove’s fees as longstanding, but downplayed the significance of the lawsuit. He compared Rightmove’s subscription model to airline pricing, suggesting that value assessments are subjective and alternatives are available. Despite agent frustration and a recent petition signed by over 2100 estate agents seeking a review of Rightmove’s pricing policies, Mr Codling noted that users opt for varying levels of service and alternatives when available, concluding that litigation remains an unusual approach in commercial disputes over price.

The legal challenge follows a sharp decline in Rightmove’s share price, after the company announced increased investment in artificial intelligence technology. This move wiped more than £1 billion from Rightmove’s market value last week. The outcome of the litigation may have broader implications for competition in the property portal sector and the relationship between dominant digital platforms and their business clients.