Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.

Rightmove Faces £2.3m Legal Costs in £1.5bn Competition Claim

Rightmove has disclosed it expects to incur £2.3 million in legal costs this year related to a class action lawsuit alleging anti-competitive behaviour. The Competition Appeal Tribunal has scheduled a hearing for 2nd and 3rd November 2023, with Rightmove required to submit its response to the claim this week.

The legal action, valued at £1.5 billion, has been brought by Jeremy Newman, a former Competition and Markets Authority panel member. According to Rightmove’s latest half-year financial results, the company’s operating costs increased by 17% to £77.7 million, up from £66.3 million in the previous period. This figure includes £10.4 million of underlying cost increases and £2.3 million in legal and professional fees directly related to the proposed claim, partially offset by £1.3 million in lower share-based incentive charges.

Newman has secured support from a significant number of estate agencies for the initiative, which alleges that Rightmove abused its dominant position in the online property portal market by charging excessive and unfair fees to estate agents.

Rightmove stated that it 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 described itself as “one of the most efficient parts of the UK housing market” and said the claim is “without merit,” adding that it will “defend it vigorously.”

The legal costs represent a material expense for Rightmove and could impact profitability in the current financial year, depending on the duration and complexity of the proceedings. The outcome of the case could have significant implications for the UK property market structure, particularly as the housing market shows signs of stabilisation.