The Foundem Story: Defying Google and Winning a Massive Fine
The past few years have been challenging for Google in legal terms, especially with the antitrust lawsuit it faces in Europe. Accused of abusing its power in the search domain, the company has had to defend its business practices, but its arguments have not convinced the authorities. This situation led to a sanction that originated in 2006 with the launch of Foundem.
The Creation of Foundem and the Beginning of Problems
In 2006, Adam and Shivaun Raff founded Foundem with the intention of competing in the price comparison market, an area where Google was also involved. However, they soon noticed that their platform was being penalized in search results. While other search engines gave them visibility, Google applied automatic penalties, causing Foundem to be practically hidden in its search results. This lack of visibility severely affected the site’s traffic, limiting its growth.
The Legal Battle: From Ignored Complaints to the European Commission’s Intervention
Despite numerous complaints from the Raffs between 2006 and 2008, Google did not respond or resolve the issue. After several years of unsuccessful struggle, the couple decided in 2010 to take their case to the European Commission, seeking justice for what they considered unfair treatment. In response, the European Commission launched an antitrust investigation to analyze whether Google was using its dominant position to harm competitors like Foundem.
Finally, in 2017, after almost a decade of investigation, the European Commission fined Google €2.85 billion. The sanction was imposed for anticompetitive practices that not only affected Foundem but also other companies like Microsoft and Expedia. Google, however, did not give up and filed multiple appeals to overturn the fine.
An Inevitable Closure and the Raffs’ Persistence
By the time the sanction was imposed in 2017, Foundem had already closed its doors the previous year, in 2016, due to lack of traffic and visibility. However, the story does not end here. The Raffs filed a lawsuit against Alphabet, Google’s parent company, seeking to recover economic damages for the losses suffered. This new trial is scheduled for the year 2026.
A Precedent in the Fight Against Monopoly
The case of Foundem and the legal battle of the Raffs against Google sets an important precedent in the realm of antitrust laws. The resolution of this conflict reinforces the idea that no company, not even the largest, is exempt from respecting fair competition. Although Foundem did not survive, the impact of their case has left a significant mark on the regulation of business practices of major tech companies in Europe.
