In the vibrant e-commerce landscape of 2006, two founders, Shivaun AND Adam Raff, got off to a busy start when they launched Foundem, a pioneering price comparison platform. Investing time and resources, the couple built the site from the ground up, forgoing stable careers in hopes of revolutionizing the way online shopping was done. However, their enthusiasm was soon crushed by an unexpected obstacle that led to a years-long legal battle with Google.
Foundem suffered a Google search penalty soon after its launch. This penalty was caused by an automatic spam detection filter in search engines, damaging the site’s ranking in relevant searches. As a result, Foundem’s visibility dropped dramatically, reducing its chances of attracting customers and compromising its revenue. The couple closely monitored the site’s online presence, but were dismayed to notice an immediate decline across the board.
How did Google get involved in a 15-year legal battle?
The negative launch experience lit a fire that would last 15 years, leading to a complex legal battle between Foundem and Google. This fight culminated in a €2.4 billion antitrust fine against the tech giant, one of the largest ever imposed. The European Commission has ruled that Google abused its market position by favoring its price comparison service in search results.
Shivaun and Adam’s attempts to cancel the penalty were unsuccessful. Google hasn’t budged, even after repeated requests for a review. On other search platforms, such as Bing and Yahoo, Foundem appeared normally, but Google’s dominance in the digital market has undermined these efforts. This disparity has been a crucial factor in challenging Google’s practices in court.
During the trial, Foundem presented evidence that its website was being unfairly suppressed in searches, while Google promoted its products and services. This practice has been considered anti-competitive by the European Commission. The 2017 ruling found Google guilty of manipulating search in a way that set the stage for future regulation in the tech sector.
Crucial was not only the evidence presented by Foundem but also the growing number of complaints emerging from similar companies such as Kelkoo and Trivago. This support signaled a systemic problem, straining Google’s practices in an increasingly competitive landscape.
Despite the legal victory, Foundem did not survive. Closing its doors in 2016, the founders reflected on the arduous journey and years dedicated to a fight that signaled flashpoints in the discussion about the power of big tech companies.
“I think if we had known it would take so many years, maybe we wouldn’t have made the same choice”Adam told BCC.
The company that owns Google was today fined 1 million reais.
Assuming that they didn’t earn anything else, just with today’s market value (1.76 billion dollars) they could be fined, EVERY DAY, 1 million reais for 24 thousand and 109 years.
The fine is not even pedagogical.
—Fernando Horta (@FernandoHortaOf) March 16, 2024
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
