Rightmove sets out opposition to £1.5bn group claim

Rightmove has set out its opposition to a £1.5billion legal action brought against it by agents.

The legal action is being taken on behalf of thousands of estate agents who claim they have been overcharged by the property portal.

The case is being let by a former Competition and Markets Authority panel member Jeremy Newman.

The Competition Appeal Tribunal is hearing arguments this week on whether the case can be brought on an opt-out basis or if each involved agent would need to actively opt-in.

Rightmove is confident in the value we provide to our partners and consumers.”

Newman is arguing that the case should proceed as a group claim on an opt-out basis.

Rightmove argues that the claim should only be certified, if at all, on an opt-in basis, letting businesses decide whether to participate. The portal has also proposed a hybrid approach requiring larger businesses that spent more than £1million during the claim period to opt in.

The portal also questions whether Newman is the right person to bring the case, how it is being funded and says there has been no plausible methodology for how the claim value and compound interest has been calculated.

Rightmove opposition

Rightmove said in a statement: “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.

“As one of the most efficient parts of the housing market, we help people across the UK to move home by bringing buyers, sellers, renters, landlords and agents together.

“Our platform continues to provide a growing range of constantly evolving products and features which facilitate market transparency, liquidity and confidence. This claim is without merit, and we will defend it vigorously.”

Newman has argued that the claim should go ahead on an opt-out basis, meaning affected businesses are included automatically unless they choose to leave.

He told the court that an opt-in would help only Rightmove as it would cost more and reach fewer businesses, so many would have no realistic route to compensation.

Newman says: “We look forward to making the case that this claim should proceed on an opt-out basis. Any alternative would be a serious obstacle for small and medium-sized businesses, and few (if any) can justify the time, cost and risk of bringing a claim alone, or of joining an opt-in claim. The result would be fewer businesses compensated and higher legal costs. That helps only Rightmove.”

A judgement is unlikely to come this week and usually takes a few months.

The post Rightmove sets out opposition to £1.5bn group claim appeared first on The Negotiator.

Author: Gemma