Danni Hewson, head of financial analysis at AJ Bell, said: “Rightmove shares got a nasty jolt on news of a £1.5 billion legal claim being filed against the company with the Competition Appeal Tribunal.
“Estate agents have long grumbled about being squeezed by Rightmove, which benefits from a strong competitive position.
“This legal action has reportedly been launched by accountant Jeremy Newman on behalf of hundreds of agents.
“Being the market leader creates a virtuous circle for Rightmove.
“Its site has the most listings and is therefore the one which prospective property buyers will go to when looking for their next home.
“This reinforces its position as a must-have product for estate and letting agencies and housing developers, providing it with significant pricing power when it comes to securing subscriptions.
“Rightmove’s statement makes clear it will fight any action and argues it provides value to its agent partners and consumers.
“The share price has pared back some of its initial losses, suggesting investors aren’t too concerned about the news for the time being.”
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