Google Loses €2.4B Battle Against Small Business Founders via @sejournal, @MattGSouthern

A British couple’s legal battle against Google’s search practices has concluded.

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

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 primary traffic source.

“Google essentially disappeared us from the internet,” says Shivaun Raff.

The search penalties remained in place despite Foundem later being recognized by Channel 5’s The Gadget Show as the UK’s best price comparison website.

From Complaint To Major Investigation

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

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

The investigation concluded in 2017 with the Commission ruling that Google had illegally promoted its comparison shopping service while demoting competitors, resulting in the €2.4 billion fine.

Here’s a summary of what happened next.

Timeline: From Initial Fine to Final Ruling (2017-2024)

2017

• European Commission issues €2.4 billion fine against Google
• Google implements changes to its shopping search results
• Google files initial appeal against the ruling

2021

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

2024 March

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

September

• European Court of Justice rejects Google’s final appeal A fine of €2.4 billion is definitively upheld
• Marks the end of main legal battle after 15 years

The seven-year legal process highlights the challenges small businesses face in seeking remedies for anti-competitive practices, despite having clear evidence.

Google’s Response

Google maintains its 2017 compliance changes resolved the issues.

A company spokesperson stated:

“The changes we made have worked successfully for more than seven years, generating billions of clicks for more than 800 comparison shopping services.”

What’s Next?

While the September 2024 ruling validates the Raffs’ claims, it comes too late for Foundem, which closed 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 pursuing a civil damages claim against Google, scheduled for 2026.

Why This Matters

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

The case has already influenced new digital marketplace regulations, including the EU’s Digital Markets Act.

Although Foundem’s story concluded with the company’s closure in 2016, the legal precedent it set will endure.

Featured Image: Pictrider/Shutterstock