Competition | August 29, 2024
Image: Hard Bacon
When Google Attacks, Small Businesses Like Hardbacon Pay the Price
Both large and small businesses rely on search engine exposure, such as Google Search, to reach potential customers. It’s a battle for online visibility, and with Google controlling 90.8% of the online search market, changes to the search algorithm can be devastating for businesses that rely on online search for survival. Hardbacon severely disrupts internet traffic The recent search fix forced them to file for bankruptcy, according to a blog post. This is an example of (potentially) anticompetitive behavior that requires Google’s response and a Competition Bureau investigation, and an effort to maintain a more level digital economy. Especially at a time when Google has lost a major antitrust case that found it to have an illegal monopoly and was deemed a “monopolist” by U.S. District Judge Amit Mehta.
The Struggle of Hard Bacon
Hardbacon, a Montreal-based fintech startup that integrates investment and financial planning tools, recently declared bankruptcy. Google announced a major search update for “helpful content” in September 2023, which will Hard Bacon, 97% of Internet Traffic Lost. Hardbacon relied heavily on affiliate marketing, so the impact of the Google update essentially broke Hardbacon’s business model, which could be very difficult to recover from, leading to layoffs and now the company is in the hands of a trustee. A recent update from the Search Engine Roundtable confirmed that the main reason for Hardbacon’s search traffic decline and bankruptcy was a major upgrade by Google.
see: Now it’s time to say goodbye
This is a classic case of David and Golays. Google’s monopoly in the search engine industry means that even small tweaks to its algorithm can have a huge impact on companies that rely on organic search traffic. Google is free to tweak its algorithms to improve user experience, but concerns about the lack of transparency and the negative impact on companies like Hardbacon are legitimate.
Why Canada’s Competition Bureau Should Intervene
The Competition Bureau of Canada is responsible for ensuring that businesses compete on a level playing field and that markets function fairly. On the surface, it appears that Hardbacon was unfairly disadvantaged by Google’s actions and could file a formal complaint with the Competition Bureau. At the very least, the Canadian competition regulator should investigate the incident to better understand what is happening to thousands of Canadian small businesses and organizations. Hardbacon would do well to begin discussions with the Competition Bureau to raise awareness and explore potential remedies.
Seek legal advice and assistance
It may be too late for Hardbacon, but for companies in similar situations and for Hardbacon itself, Consider seeking legal advice from a competitive attorney. Before you begin formal discussions with the Office, it is important to understand the legal context and implications of filing a complaint with the Office when dealing with a large incumbent company like Google.
see: Continued Canadian Competition Dialogue (Thanks to Senator Colin Deacon)
It is also possible Politicians like Senator Deacon will be very interested in this issue.. When political supporters get involved, the case carries more weight, the more likely it is that serious action will be taken, and awareness and support for the issue will increase.
conclusion
Unfortunately, Hardbacon’s situation is not unique. Many small businesses in Canada and around the world have seen similar declines in visitor traffic and revenue as a result of Google’s adjustments. If this situation continues, it will only stifle innovation and limit the variety of services available to consumers. Contacting the Competition Bureau is optional, but seeking legal advice from a competition lawyer is a strategic first step. In Canada, fighting for fair competition is a worthwhile undertaking!
that National Crowdfunding and Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry management, networking and funding opportunities and services to thousands of community members, working closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and decentralized, NCFA works with global stakeholders to help foster projects and investments in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrencies, regtech and insurtech. Join the Canadian fintech and funding community for free today! Or become a contributing member and enjoy the benefits. For more information, visit www.ncfacanada.org.