A hearing has commenced before the UK Competition Appeal Tribunal regarding a comprehensive lawsuit against property portal Rightmove. At the centre of the proceedings is the question of whether the legal dispute, valued at £1.5 billion, can be certified as a collective action on behalf of thousands of British estate agents.
Allegations of abuse of a dominant market position
The claimants accuse Rightmove of abusing its dominant position in the UK market. The portal operator is alleged to have charged excessive and unfair fees for listing property adverts. Given that Rightmove occupies a central position in national marketing, many estate agency businesses felt compelled to pay the required rates on an ongoing basis.
The initial focus of the current hearings is formal certification as a collective proceeding. Approval by the tribunal would enable thousands of affected agencies to pursue their financial claims collectively, without each having to launch separate legal actions.
Key elements of the dispute
- —Total claim value of £1.5 billion against the market-leading British portal operator
- —Assessment of the application for certification as a class action for thousands of estate agents
- —Legal basis rests on allegations of unfair and excessive fee rates
- —Hearing before the specialised UK Competition Appeal Tribunal
Rightmove rejects the allegations and defends its pricing structure as consistent with the market. The outcome of the proceedings is being monitored with considerable interest in the United Kingdom, as a ruling could have fundamental repercussions for the relationship between commercial agents and large platform operators.
Should the Competition Appeal Tribunal grant the claimants' application, the case will proceed to an examination of its merits. A legal dispute of this scale is likely to occupy the UK property industry both legally and economically for an extended period.
