Foundem vs. Google: How one startup’s story shaped big tech regulations

For most startup founders, launch day is a nerve-wracking blend of excitement and worry. But for Shivaun Raff and her husband, Adam, that day in June 2006 turned into a nightmare they hadn’t seen coming.

Their new venture, Foundem—a unique price comparison website they’d left stable careers to create—was finally live. But soon after launch, Foundem practically vanished from Google. Marked as spam by Google’s algorithm, the site was buried deep in search results for terms like “price comparison” and “comparison shopping.” Without Google visibility, Foundem struggled to generate revenue, and the couple’s enthusiasm turned into dissatisfaction.

According to BBC, Shivaun and Adam believed initially that the issue was caused by a glitch. Foundem ranked regularly on other search engines, so they contacted Google in the hope of resolving the issue. But as months went by, their repeated appeals met with silence. Meanwhile, the site remained at the bottom of search results, despite its high relevance. By 2017, after years of trying to gain traction, Foundem was one of around 20 companies—including Kelkoo, Trivago, and Yelp—that had filed complaints. That year, Google was landed with a €2.4 billion fine for anti-competitive practices.

Adam had first dreamed up Foundem while working in supercomputing, envisioning a comparison tool that would cover everything from flights to clothing, unlike the category-specific options available at the time. Little did he know that his startup would become entangled in a legal battle with one of the world’s largest companies.

Foundem saw a surge in traffic in late 2008 after Channel 5’s The Gadget Show crowned it the UK’s top comparison site. Despite the exposure, Google’s ranking algorithm continued to push Foundem to the bottom of SERPs (search engine results pages). Realising their options were limited, Shivaun and Adam turned to the media, and eventually regulators, in the United Kingdom, the US, and the European Commission. In 2010, the EC opened an antitrust investigation.

When the final ruling came, Google was hit with a record fine, but the Raffs weren’t in a celebratory mood. They saw this as just the beginning, determined to ensure the decision was enforced.

Although Google’s appeals dragged on, the European Court of Justice upheld the verdict in 2024. Meanwhile, new investigations under the EU’s Digital Markets Act are examining whether Google’s own products continue to dominate search results. Google claims it has been compliant since 2017, citing billions of clicks for other comparison sites.

Shivaun and Adam are still fighting. After closing Foundem in 2016, they are now pursuing civil damages in a case set for 2026. Reflecting on their journey, Adam admits that if they’d known the road ahead, they might have thought twice—but their resolve remains.

(Image by AS Photograpy)

See also: Safe Coding: Google’s strategy reduces memory safety vulnerabilities

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Tags: european commission, google, regulation, security