Google's €2.4 Billion Antitrust Loss – What Happened?

30 Oct 24

3 minutes

Imagine going up against one of the biggest tech companies in the world and actually winning.

That’s exactly what happened with Foundem, a small British price comparison website, in a massive legal battle against Google.

This wasn’t just any case; it stretched over 15 years and highlighted some of Google’s unfair business practices. Let’s break down what this case was about and why it’s so important.

The Case Against Google

The main issue was about how Google messed with its search results. Foundem claimed that Google was changing things around to favor its own shopping service. This meant that smaller competitors like Foundem were shoved way down in the search results, making it hard for anyone to find them. Think about searching for a cool new game but only getting results from a single store. That’s not fair, right?

The European Commission took a good look at what Foundem was saying and found that it wasn’t alone. Other companies were also being hidden in search results so that Google’s services would look like the only option.

David vs. Goliath

This case was like the classic story of David going up against Goliath. Foundem was a small business, and even though they had lots of evidence to show they were being harmed, the fight took years and years. Sadly, in the end, Foundem had to shut down in 2016. But their battle was not in vain.

A Landmark Ruling

The European Court of Justice, which is the highest court in Europe, ruled against Google, confirming that what they were doing was wrong. This decision was huge because it showed that even tech giants like Google have to play by the rules. It set a new precedent, meaning that any future case about unfair business practices might use this one as a guide.

In response, Google said they had already made changes back in 2017 to fix these problems. They claimed these changes helped more than 800 other shopping services by generating billions of clicks for them. But that hasn’t stopped the European Commission from starting another investigation in 2024 to see if Google is still playing favorites.

What This Means for the Future

More Eyes on Tech Giants

Rulings like this one mean that Google and other big tech companies are going to be watched even more closely. There could be more investigations and more rules to make sure everybody plays fair.

Hope for Small Businesses

Foundem’s win gives hope to smaller companies. It shows that if they stand up for what’s right, they can make a difference no matter how big their competition is.

Changes in Digital Markets

With new regulations like the EU’s Digital Markets Act coming into play, we might see fairer competition in online markets. This would be good for all of us who use the internet because it means more options and maybe even better prices!

The Legacy of Foundem

Even though Foundem had to shut its doors, their fight left a lasting impact. They’re still going strong in the legal world, planning to pursue damages against Google with another court date set for 2026.

In summing up, even a small company can stand up to a giant and win, changing the playing field for everyone in the process. As online markets continue to grow and evolve, it’s important that rules ensure fairness, encouraging healthy competition and innovation.

General