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.
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 acknowledged the claims, but deemed themmeritless and said the firm will defend itself. * “Rightmove is confident in the value we provide to ourpartners and consumers, who are at the core of our businesssolutions and digital platform,” the company said. * Over 250 estate agencies from across the UK have expressedinterest in and support for the claim since it was firstannounced, according to a statement from the claimants. * “There has been an extremely encouraging response fromestate agents since we announced this legal action,” Newman saidin a statement. * The UK property sector has been marred by falling marketdemand and sales in recent years – problems which are furthercompounded by the ongoing Middle East conflict, pushing up costsand risks of interest rates staying higher for longer. * The claim is fully funded by Innsworth Capital, with legalsupport from Scott+Scott UK LLP.
($1 = 0.7517 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Maju Samuel)