The UK’s largest online property platform, Rightmove, is bracing for an “imminent” £1 billion ($1.31 billion) class action lawsuit, with thousands of estate agents accusing the FTSE 100 company of charging excessive and unjustified fees that exploit its market dominance.
The proposed opt-out claim, announced Thursday, is spearheaded by Jeremy Newman, an accountant and former member of the Competition and Markets Authority (CMA). He alleges that Rightmove has abused its dominant position in the online property listings market, effectively cornering estate agents into paying inflated subscription costs.
Profit Margins That Raise Eyebrows
Newman’s filing points to Rightmove’s astonishing 70% profit margin, branding it the most profitable company on the FTSE 100. The platform serves as the UK’s central hub for estate and letting agents, as well as developers listing properties for sale or rent.
“Rightmove knows that, thanks to its first-mover advantage, its product is viewed as a ‘must-have’ for estate agents,” Newman stated. “It exploits this dominance to impose unfairly high subscription fees, both outright and in comparison with its rivals.”
The complaint alleges that estate agents have been forced to shoulder regular and steep price hikes, with few viable alternatives due to Rightmove’s overwhelming grip on the market.
