Vithanage Erandi Kawshalya Madhushani Jade Times Staff
V.E.K. Madhushani is a Jadetimes news reporter covering Innovation.
How a small price comparison website challenged Big Tech, leading to one of the largest anti-trust fines in history.
In 2006, British entrepreneurs Shivaun and Adam Raff launched their ambitious price comparison site, Foundem, after leaving successful tech careers to pursue their entrepreneurial dream. Yet on the same day they went live, their startup’s visibility on Google the world’s largest search engine effectively vanished. Google’s algorithm flagged the site as spam, instantly pushing Foundem far down in search rankings, away from potential customers. This unexpected setback marked the beginning of a 15 year battle against Google’s dominance, a fight that eventually led to a landmark $2 billion payout.
A Promising Startup, Disappeared
Foundem aimed to provide a unique service by comparing a wide variety of products, from flights to clothing, on one platform, a rare feature at the time. Initially, the Raffs thought Google’s search penalty was a simple mistake and filed numerous requests to lift it. But after more than two years and no response, they realized they were facing something larger. With no Google traffic, Foundem’s revenue plummeted.
“Our site was ranking normally on other search engines, but back then, Google was already the go-to search engine for the vast majority of internet users,” explains Shivaun. Unable to generate significant visibility, the couple saw their platform struggle. They soon recognized that Foundem was not the only platform affected; other comparison sites were facing similar obstacles as Google’s own shopping services started to dominate search results.
Rallying Against Big Tech
Determined to expose what they felt was a violation of fair competition, Shivaun and Adam went public, bringing the issue to the attention of authorities in the UK, US, and Europe. They were met with limited success until 2010, when the European Commission (EC) opened a formal investigation into Google’s practices. “The regulators were skeptical at first,” recalls Shivaun, “and even asked why we were the only ones raising this.” But the couple argued that Google’s influence over web traffic meant that most companies feared taking on the tech giant.
In June 2017, the EC ruled against Google, issuing a record-breaking $2.4 billion (€2 billion) fine, and declared Google’s prioritization of its own shopping services in search results as an abuse of its market dominance. Google fought the verdict for seven years, but the European Court of Justice ultimately upheld the ruling in 2024. This decision marked a turning point in global tech regulation, highlighting the growing concerns over anti-competitive practices in digital markets.
Aftermath and Ongoing Battle
While the Raffs celebrated their initial victory, their fight against Google was far from over. They contend that Google continues to engage in anti-competitive practices and are now pursuing a civil damages lawsuit, set to be heard in 2026. The European Commission has also launched a new investigation under the Digital Markets Act, scrutinizing whether Google’s parent company, Alphabet, still favors its own services over competitors.
Google insists that it has made significant changes since 2017, stating that their revised practices have benefited hundreds of comparison shopping services, but the Raffs remain unconvinced. They believe Google’s changes are insufficient and have pushed for further regulatory enforcement.
A Pyrrhic Victory
The toll on the Raffs has been high. By 2016, Foundem was no longer sustainable and was forced to close, a casualty of the lengthy legal proceedings and lack of web traffic. Reflecting on the ordeal, Adam admits, “If we’d known the fight would take 15 years, we might have thought twice.”
Still, the couple’s tenacity paved the way for other small businesses by holding Big Tech accountable. “We don’t like bullies,” Shivaun asserts, “and we hope our case sets a precedent for fair competition on the internet.”
Their battle against Google highlights the growing need for regulation in digital markets and the potential for small businesses to challenge tech giants even when it takes over a decade to see results.
