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Google loses €2.4 billion battle against small business founders
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Google loses €2.4 billion battle against small business founders

A British couple’s legal battle against Google’s search practices is over.

Europe’s highest court has upheld a €2.4 billion fine against Google, marking a victory for small businesses in the digital market.

Background

Shivaun and Adam Raff launched Foundem, a price comparison website, in June 2006.

On launch day, Google’s automated spam filters hit the site, pushing it deep into search results and cutting off its main source of traffic.

“Google basically wiped us off the internet” said Shivaun Raff.

The search penalties remained in place even though Foundem was later recognized by Channel 5’s The Gadget Show as the UK’s best price comparison site.

From complaint to major investigation

After two years of unanswered calls to Google, the Raffs took their case to regulators.

Their complaint led to a European Commission investigation in 2010, which found similar problems affecting around 20 other comparison shopping services, including Kelkoo, Trivago and Yelp.

The investigation ended in 2017 The Commission ruled that Google had illegally promoted its price comparison service while demoting its competitors, resulting in a fine of 2.4 billion euros.

Here’s a summary of what happened next.

Timeline: From initial fine to final decision (2017-2024)

2017

  • European Commission fines Google €2.4 billion
  • Google implements changes to its shopping search results
  • Google files first appeal against decision

2021

  • The General Court of the European Union confirms the fine
  • Google launches second appeal to the European Court of Justice

2024 March

  • European Commission launches new investigation under the Digital Markets Act
  • Probe examines whether Google continues to favor its services in search results

September

  • The European Court of Justice rejects Google’s last appeal The fine of 2.4 billion euros is definitively confirmed
  • Marks end of main legal battle after 15 years

The seven-year legal proceedings highlight the challenges small businesses face when seeking solutions to anticompetitive practices, despite clear evidence.

Google’s response

Google maintains that its 2017 compliance changes fixed the problems.

A company spokesperson said:

“The changes we made have worked successfully for over seven years, generating billions of clicks for over 800 price comparison services. »

What’s next?

If the September 2024 judgment validates the Raffs’ assertions, it comes too late for Foundem, which closed its doors in 2016.

In March 2024, the European Commission launched a new investigation into Google’s current practices under the Digital Markets Act.

The Raffs are now filing a civil action for damages against Google, scheduled for 2026.

Why it matters

This decision confirms that Google’s search rankings may be subject to regulatory oversight and legal challenges.

The case has already influenced new digital market regulations, including the European Digital Markets Act.

Even though Foundem’s story ended with the company’s closure in 2016, the legal precedent it set will endure.


Featured image: Pictrider/Shutterstock