In a landmark September ruling, the European Court of Justice (ECJ) recently upheld a €2.4 billion (approximately ₹26,000 crore) fine against Google for abusing its market dominance by favouring its shopping services over competitors.
The fine, initially imposed by the European Commission in 2017 for antitrust violations, concludes a 15-year legal battle initiated by UK entrepreneurs Shivaun and Adam Raff. Their price comparison website, Foundem, was severely impacted after Google’s search algorithms demoted it in favour of Google’s services.
Following multiple appeals, the ECJ’s decision announced on September 10, 2024, reinforced the Commission’s ruling, establishing a significant precedent in regulating Big Tech practices and prompting increased scrutiny worldwide. The couple recently shared their 15-year legal battle with Google during a conversation on a UK-based radio show.
2006
Shivaun and Adam Raff, a UK couple, left their jobs to launch Foundem, a price comparison website designed to help users find deals on electronics, flights, and other goods. Shortly after launch, they noticed that Foundem was buried in Google’s search results, particularly for critical keywords like “price comparison” and “comparison shopping.” This setback affected Foundem's traffic and revenue, which relied on affiliate clicks through its product listings.
2007-2008
Initially, the Raffs believed Foundem’s low visibility on Google was an error, assuming it had been mistakenly flagged as spam by the search engine’s automated filters. They expected the issue to be resolved with an appeal, yet despite repeated requests, Foundem’s rankings on Google remained suppressed. Meanwhile, the site performed normally on other search engines, though this was of little help, as everyone was using Google. Nearly two years later, with no response from Google, the couple began to suspect foul play.
Late 2008
In December 2008, Foundem gained significant recognition when Channel 5’s The Gadget Show named it the “Best Price Comparison Website in the UK.” This accolade triggered a surge in visitors, temporarily slowing down the website, which the couple initially mistook for a cyberattack. The Raffs reached out to Google, arguing that it would serve users to have Foundem easily discoverable. However, Google did not act on their request, which led the Raffs to take their complaints to regulators in the UK, the US, and eventually the European Union.
2010
The European Commission (EC) initiated an antitrust investigation into Google’s practices, following complaints from the Raffs and others who reported similar issues with search result visibility. The EC’s investigation focused on whether Google had misused its market dominance to favour its shopping services over competitors like Foundem.
2017
By 2017, the couple discovered they were not alone in facing issues with Google; around 20 other companies, including Kelkoo, Trivago, and Yelp, reported similar experiences. After a seven-year inquiry, the EC ruled that Google had indeed abused its position, favouring its services in search results while sidelining competitors. The ruling imposed a fine of £2.4 billion on Google, marking a significant victory for the Raffs and a landmark case in the regulation of Big Tech practices.
2017-2024
Google contested the ruling with multiple appeals, which kept the case in court for several more years. Despite the drawn-out legal process, the European Court of Justice ultimately upheld the EC’s decision in September 2024, reinforcing the original ruling against Google. Google stated that the court's judgement only addressed practices impacting product results between 2008 and 2017, according to the company's spokesperson in responses to UK media. Google also asserted that its adjustments made in 2017 have been successful, generating billions of clicks for more than 800 comparison shopping services.
2024-2026
Following the judgement, the Raffs filed civil damages claim against Google, with a trial set for 2026. Foundem was forced to shut down in 2016. The couple noted that had they known the process would take 15 years, they might have reconsidered pursuing the case. Despite Google’s defeat in the European Court of Justice, the Raffs believe the battle is far from over, as they contend that Google's practices remain anti-competitive.
What next for Google?
The September defeat adds to the challenges facing the Magnificent Seven firm, with ongoing investigations into Google’s digital advertising dominance in the US, UK, and EU.
In March, the European Commission opened an investigation into Google’s parent company, Alphabet, under the new Digital Markets Act (DMA) to assess the potential preferential treatment of its own services. The DMA, designed to prevent tech monopolies, is part of expanded regulatory efforts.
