UK's Rightmove hit with $2 billion lawsuit over estate agent fees

Rightmove Faces $2 Billion Lawsuit Over Estate Agent Fees in UK

Details of the Rightmove Lawsuit and Market Impact

April 1 (Reuters) - Rightmove has been named in a 1.5 billion pound ($2 billion) lawsuit in the UK's Competition Appeal Tribunal by estate agents, alleging Britain's biggest property listing portal has abused its market position by charging them and developers excessive subscription fees.

Shares of the company fell nearly 9% on Wednesday.

Background and Legal Proceedings

The claim - being led by former Competition and Markets Authority (CMA) panel member Jeremy Newman - was first disclosed in November, when potential claims were pegged at a lower 1 billion pound tag.

Rightmove's Response

• Rightmove acknowledged the claims, but deemed them meritless and said the firm will defend itself.
• "Rightmove is confident in the value we provide to our partners and consumers, who are at the core of our business solutions and digital platform," the company said.

Support from Estate Agents

• Over 250 estate agencies from across the UK have expressed interest in and support for the claim since it was first announced, according to a statement from the claimants.
• "There has been an extremely encouraging response from estate agents since we announced this legal action," Newman said in a statement.

Market Context and Sector Challenges

UK Property Sector Overview

• The UK property sector has been marred by falling market demand and sales in recent years - problems which are further compounded by the ongoing Middle East conflict, pushing up costs and risks of interest rates staying higher for longer.

Legal and Financial Support

• The claim is fully funded by Innsworth Capital, with legal support from Scott+Scott UK LLP.

Exchange Rate Information

($1 = 0.7517 pounds)

Reporting Credits

(Reporting by Yamini Kalia in Bengaluru; Editing by Maju Samuel)