Shivaun and Adam Raff, co-founders of Foundem, share their incredible journey of battling Google after their price comparison site fell off its search results just after launch. They discuss the complexities of navigating Google's algorithms and the intense seven-year legal struggle that ultimately led to a historic €2.4bn fine for the tech giant. Accompanied by Anne Witt, a law professor, they delve into the implications for market regulation and reflect on the challenges of innovation in a landscape dominated by powerful tech firms.
The Raffs' legal battle against Google revealed significant issues regarding the tech giant's market dominance and self-preferencing in search results.
Their journey emphasized the importance of regulatory advocacy in addressing anti-competitive practices within the rapidly evolving digital marketplace.
Deep dives
The Battle Against Google's Dominance
A British couple, Siobhan and Adam Raff, launched their price comparison website, Foundem, in 2006, but faced an immediate setback when Google imposed a search penalty that virtually erased their online presence. Despite their initial belief that this might be a mistaken penalty, they quickly realized that Google, which dominated the search engine market, had buried them under a mountain of competing content. Their attempts to reach out to Google for reinstatement proved futile, as Google remained unresponsive, ultimately leading the Raffs to understand they had to take action against the search giant. They recognized that Google's actions not only harmed their business but posed broader implications for competition in the digital marketplace.
The Fight for Fair Competition
Over the years, the Raffs transitioned their battle against Google into both public advocacy and formal regulatory channels, seeking to expose what they considered anti-competitive practices. They discovered that while Foundem ranked well on other search engines, Google's overwhelming dominance rendered those rankings irrelevant, as most users accessed the internet primarily through Google. With support from various stakeholders, including other tech companies, they pushed their case to European regulators, stressing the need for fair treatment in search results. Their efforts highlighted the systemic issues arising from what's seen as Google’s practice of self-preferencing its products over competitors.
Regulatory Encounters and Challenges
As the Raffs engaged with European regulators, they faced numerous hurdles while trying to increase their visibility within the competitive landscape. They initially communicated their concerns to EU officials, particularly their desire for a level playing field amid Google's powerful search algorithms. However, the complex nature of digital markets made it difficult for many to see the merit in the Raffs' claims, especially given Google’s reputation as a provider of free services. Despite being dismissed multiple times, their commitment to advocating for their cause ultimately led to a historic investigation into Google's practices under EU competition law.
A Landmark Decision and Its Aftermath
In 2017, after a protracted investigation, the European Commission ruled that Google had indeed abused its dominant market position by artificially promoting its shopping services, ordering it to cease such practices and imposing a substantial fine. This decision marked a pivotal moment for antitrust action against big tech companies, showing that regulators were beginning to take the competitive dynamics of the digital economy seriously. While the Raffs had fought for years and sacrificed their business for this cause, they found some validation in the Commission's findings, but the lengthy process left Foundem in ruins. With the emergence of the Digital Markets Act, the Raffs remain hopeful for stronger protections in the digital landscape, although they grapple with the loss of their original business vision.
When Shivaun and Adam Raff's shopping and price comparison website all but vanished from Google's search results just days after launching, the pair began a gruelling legal battle that would end with a landmark judgement and the tech giant receiving a then record fine.
European regulators found the search engine guilty of abusing its market dominance by making its own shopping recommendations appear more prominently than rivals' in its search results. Google spent seven years appealing its €2.4bn fine, but eventually lost in September this year.
In their first interview since that verdict the Raffs tell Evan Davis the story behind their website - Foundem - and what they learned about big tech, regulation, and themselves during their almost 20-year fight.
Evan is joined by:
Shivaun and Adam Raff, co-founders, Foundem;
Anne Witt, professor of law, EDHEC business school.
Credits:
President Barack speaking to Kara Swisher, from the technology news website Recode, in February 2015;
Joaquín Almunia speaking at a European Commission press conference in February 2014;
Margarethe Vestager speaking at a European Commission press conference in June 2017.
Production team:
Producer: Simon Tulett
Researcher: Drew Hyndman
Editor: Matt Willis
Sound: Jonny Baker and Neil Churchill
Production co-ordinator: Katie Morrison
(Picture: The Google logo displayed on a mobile phone and computer monitor. Credit: Leon Neal/Getty Images/BBC)
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