Home Blog Google Faces Largest Fine of £2.4 billion Yet as UK Entrepreneurs Prevail in Landmark Case

Google Faces Largest Fine of £2.4 billion Yet as UK Entrepreneurs Prevail in Landmark Case

by theparliamentnews.com
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Google has lost a 15-year legal battle against a UK couple, resulting in a £2.4 billion fine for abusing its market dominance in the online shopping comparison sector. This decision, reached by Europe’s highest court, marks a historic win for Adam and Shivaun Raff, founders of Foundem—a price comparison website that faced crippling restrictions after Google’s algorithms flagged it, effectively erasing its visibility in search results. Now, the long journey has finally ended with a record-breaking fine imposed on Google and fresh momentum for anti-trust discussions globally.

The Battle Begins: Foundem vs. Google

The story began in 2006 when Adam and Shivaun Raff left secure, high-paying jobs to launch Foundem, an innovative price comparison site. The platform’s model was simple yet promising: provide users with an easy way to compare prices on various products, earning revenue when users clicked through to third-party sites. However, shortly after launching, Foundem’s rankings on Google’s search engine plummeted, not due to user feedback or performance but due to one of Google’s automatic spam filters.

In those early days, the Raffs believed the penalty was a mistake, assuming Google’s algorithms had mistakenly classified Foundem as spam. Yet, despite years of inquiries, appeals, and a determined push for clarity, Google remained silent, leaving the couple without a viable path to remedy. “We initially thought this was collateral damage,” said Shivaun. “We just assumed we had to escalate to the right place and it would be overturned.” But their requests were met with silence, and Foundem’s ranking woes persisted.

The Turning Point: From Optimism to Suspicion

As their pleas went unanswered, the couple’s optimism faded, and they began to suspect Google’s dominance was impacting their business directly. The company’s hold over search visibility placed websites like Foundem at a disadvantage, especially given Google’s growing investment in its own shopping comparison services. In an unfortunate twist, Foundem had to close its doors in 2016, after ten years of fighting to regain visibility. Adam Raff summarized the struggle, saying, “If you’re denied traffic, then you have no business.”

Determined to get answers, Adam and Shivaun turned to regulatory bodies in the UK, US, and EU, who took up the case. In 2017, the European Commission ruled in favor of Foundem, imposing a historic fine of £2.4 billion on Google. This fine was the largest penalty imposed by the Commission at that time, although it has since been surpassed by another hefty fine levied against Google.

Google’s Legal Defenses and the Final Ruling

Google promptly appealed the decision, defending its search algorithm and citing changes made in 2017 to address regulatory concerns. The company noted that its updated approach had generated billions of clicks for comparison shopping services since. However, the European Court of Justice ultimately upheld the initial ruling, dismissing Google’s appeal and finalizing the substantial fine, which amounts to approximately Rs 26,172 crore.

While Google expressed disappointment, the Raffs were vindicated after years of relentless pursuit. Adam Raff admitted the toll of the prolonged fight: “I think if we had known it was going to be quite as many years as it turned out to be we might not have made the same choice.” But the result stands as a milestone in the struggle against monopolistic practices in digital markets, and the victory emboldens others in the tech space to challenge giants when competition is threatened.

What’s Next for the Raffs and Global Antitrust Laws

The Raffs’ battle against Google isn’t entirely over; a separate civil damages claim is set to begin in 2026, representing a second chapter in their campaign to seek justice for Foundem. This landmark case will likely fuel further scrutiny on how tech giants wield their power in digital markets, especially as global authorities grapple with issues of monopoly, competition, and user rights in the digital age.

Today’s ruling has not only empowered entrepreneurs but also reinforced the importance of fair practices in digital competition. Adam and Shivaun Raff’s fight serves as an enduring reminder that even the most powerful tech corporations can be held accountable, and their victory may well inspire a future where digital markets prioritize competition, transparency, and fairness.

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