Oct 29, 2024 05:54 PM IST
Google is now liable to pay ₹26,000 crores to a UK couple after losing a case which has internationally been on trial for 15 years. What is it about?
UK entrepreneurs, Shivaun Raff and Adam Raff have won a 15-year long legal battle against tech giant Google. This isn’t the first time they have emerged victorious, but as goes with the justice system, theu have miles to go before they sleep.
As per the ruling upheld by the European Court of Justice (ECJ), Google is liable to pay a fine worth €2.4 billion which in INR roughly comes up to a staggering ₹26,000 crores.
As founders of the price comparison website Foundem, Shivaun and Adam found themselves seriously impacted by the low rankings their services were accorded by the search engine’s algorithms. The fine upheld by the ECJ was originally imposed by the European Commission back in 2017. This marks a watershed moment when it comes to court rulings directed at the regulation of key market players, particularly in the tech space.
Shivaun and Adam had started noticing issues in how Foundem was ranking on Google back between 2006 to 2008, an observation which stood amplified by the fact that their rankings on other search engines were much more receptive. Despite an appeal and a patient 2-year wait, they got nowhere with their woes. In December 2008, after being named “the best price comparison website in the UK” by a renowned tech-based show, it came to light that the website simply could not handle the accelerated traffic coming it’s way. A request was put out by Shivaun and Adam to Google then, asking for Foundem to be made easily discoverable. With still no change in sight, the complaint was accelerated by them to first the UK regulators and then to its US counterparts. Eventually, the European Union was approached.
It was not just the Raffs who were bearing the brunt of everything that had come to light. About 20 other market players like Kelkoo, Trivago and Yelp, had similar complaints. The antitrust investigation launched by the European Commission (EC) was pegged on finding a definitive answer to if Google had abused its market dominance. 7 years on, the EC concluded that it had.
Recurring counter-appeals by Google have kept the issue court-bound. Though the ECJ ruling is a major feat for the Raffs, the civil damages suit filed by them is set for trial in 2026. As far as Foundem goes, it shut down in 2016.
Would the Raffs have gone down this path if they knew the gargantuan cycle they were about to weather? In their own words, they would have definitely reconsidered.
What ae your thoughts on this?