RIGHTMOVE is set to face a £1billion legal challenge over claims it charges excessive fees to thousands of estate agents.
A group led by Jeremy Newman — a former panel member of the Competition and Markets Authority — is preparing a class action at the Competition Appeal Tribunal.
The action is understood to assume many agents are being billed thousands of pounds in membership fees to use the site.
Small and independent agencies have accused Rightmove of squeezing them with higher fees than those for big corporate chains.
Rightmove told investors it is “confident in the value provided”.
The FTSE 100-listed company — which reported a pre-tax profit of £146.5million in the six months to the end of June — says it offers the UK’s largest selection of properties.
It adds around 80 per cent of all time spent on property portals is on its site.
Meanwhile, ministers have confirmed the Renters’ Rights Act will come into force on May 1.
The law will scrap Section 21 “no-fault” evictions, cap rent rises to once a year, ban bidding wars, limit upfront rent to one month, and make it illegal to refuse tenants because they receive benefits or have kids.
Tenants will be able to challenge big hikes in rent and request to have pets, while landlords will be given clearer grounds to regain properties.