In a stunning upset, last week, British couple Shivaun and Adam Raff took on tech behemoth Google and emerged victorious, securing a landmark ruling and a record-breaking €2.4 Bn (around INR 21,824 crore) fine for anti-competitive practices. The Raffs’ journey began in 2006 when they launched Foundem, an innovative price-comparison website aimed at streamlining online shopping by aggregating prices across various platforms.
Foundem’s launch in June 2006 showed initial promise, but its growth was suddenly halted due to a Google-imposed penalty.
The Google penalty dealt a devastating blow to Foundem, erasing the website from search results for crucial terms like “price comparison” and “comparison shopping” – the core of their business. This drastic drop in visibility severely impacted Foundem’s revenue stream, which relied heavily on clicks.
Adam recalled the swift and crippling effect of the penalty, stating, “We saw our rankings plummet almost immediately,” as reported by the BBC.
Initially, the Raffs thought the issue was a technical glitch and appealed to Google, expecting a swift resolution. However, two years dragged on with no solution, leaving Foundem inexplicably invisible on Google’s platform, despite functioning seamlessly on other search engines. Shivaun underscored the significance of Google’s dominance, stating, “Everyone’s using Google,” emphasizing how the platform’s stranglehold on the market made their exclusion a crippling blow to Foundem’s online presence and business prospects.
In 2008, Foundem’s visibility experienced a brief resurgence after receiving an award from Channel 5’s The Gadget Show. Emboldened by this recognition, the Raffs reconnected with Google, hoping to reaffirm Foundem’s legitimacy and resolve the lingering issues. However, Google’s response only fueled their suspicions of unfair treatment.
Undeterred, the Raffs escalated their case to regulatory bodies in the UK, US, and eventually Brussels. Their perseverance yielded results in 2010 when the European Commission (EC) initiated an investigation into Google’s practices.
In 2017, the EC delivered a landmark verdict, finding Google guilty of abusing its market dominance and imposing a record €2.4 billion (INR 21,824 crore) fine. This ruling set a precedent in global Big Tech regulation, acknowledging the need for fair competition.
However, Google prolonged the legal battle through multiple appeals. Finally, in September 2024, Europe’s top court upheld the initial verdict, confirming Google’s actions violated competitive standards.
Despite its final defeat, Google asserts its current practices align with the ruling. Meanwhile, the European Commission is scrutinizing Alphabet, Google’s parent company, under the Digital Markets Act to assess potential ongoing anti-competitive practices.
The Raffs’ quest for justice persists. After shutting down Foundem in 2016, they are now pursuing a civil damages claim against Google, with proceedings scheduled for 2026. Undeterred by the grueling journey, the couple remains resolute in challenging tech monopolies, driven by their determination to promote fair competition.
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