Rightmove is facing criticism for opposing the automatic inclusion of thousands of estate agents in a £1.5bn legal action. The case, heard by the Competition Appeal Tribunal (CAT), concerns allegedly excessive subscription fees charged by the property portal.
The central issue is whether around 13,000 estate agency and property businesses should be automatically part of the collective action or be required to sign up individually. Jeremy Newman, leading the claim, argues that Rightmove's preferred 'opt-in' method would create additional costs and administrative hurdles, deterring smaller agencies.
Newman stated that an 'opt-in' approach would be a "serious obstacle for small and medium-sized businesses," leading to fewer businesses being compensated and higher legal costs. He claims this would primarily benefit Rightmove.
The £1.5bn action alleges that Rightmove exploited its dominant position in the UK property portal market, imposing unfair subscription charges and restricting competition. Claimants cite Rightmove's reported profit margins of around 70% for two consecutive years and its platform accounting for over 80% of consumer time on UK property portals as evidence of its market dominance.
The tribunal's current hearing will not determine if Rightmove broke competition law or if agents are entitled to compensation. However, its decision on the opt-in versus opt-out structure could significantly influence the number of businesses participating in the legal action.