This week, the European Commission slapped a $2.7 billion fine on Google for allegedly favoring Google Shopping over competitors. The European Union (EU) considers this as illegal according to antitrust rules. Learn more about this story in the news briefs below.
Also in news this week, there was another global cyberattack, this time targeting Windows users that failed to properly install an update that fixed the vulnerability from May’s attacks. The attackers allegedly used tools that were stolen from the NSA.
In new listings, a $1,538,000 B2B Project Management SaaS business with very stable MRR and low churn, was just listed this morning. Also new this week is an affiliate business in the automobile space. Check out the Deal Highlights section below or browse through all of our listings here.
In events, FE is organizing a local Boston E-commerce meetup on July 12th. If you consider yourself an Amazon expert, we have room for one more panelist – get in touch today! FE is also sponsoring and speaking at Midwest E-Commerce Conference in Minneapolis on July 21-22. Look out for Founder Thomas Smale at the event or reply to this email if you want to arrange a one-on-one meeting.
Continue reading for more on the EU fine and news about a potential Google algorithm update.
Deal Highlights
New:
Affiliate – Automobile Accessories – $1.9K gross/mo
- Strong revenue growth, reaching 42% compound monthly growth rate over the trailing six months
- Rapid increase in traffic, generating over 10,000 sessions in the last month
- Keyword ranking for over 2,000 keywords
- Simple to run with low owner involvement
Yearly net profit: $17,900
Asking price: $48,500
SaaS – B2B Project Management – $35K net/mo
- Very stable MRR with low churn of 1-2% and customer lifetime value of over $14,000
- Large list of notable clients include multiple Fortune 500 names
- Full developer team willing to transition with the business post-sale
- Long and established business history leading to a strong and authoritative brand
- Low owner involvement
Yearly net profit: $422,000
Asking price: $1,538,000
Sold:
Display Advertising – Quotes – $2.4K gross/mo
Affiliate – Home & Gardening – $4K gross/mo
In the News…
EU Fines Google
On Tuesday, Google was charged for a monopoly abuse case and accused of manipulating smaller competitors and European companies. The fine amounts to $2.7 billion. The European Commission states that since 2008, Google has been altering its search engine results to give priority to Google Shopping over rival businesses. Google was then able to increase traffic, clicks and revenue. As other sites were ranked lower, they noticed a drop in traffic.
The European Commission rules this as a breach of EU rules, that were put in place to protect markets and consumers. “It has denied other companies the chance to compete on their merits and to innovate, and most importantly it has denied European consumers the benefits of competition, genuine choice, and innovation,” said Margrethe Vestager, the European Union’s Competition Commissioner.
Fines for antitrust abuses are capped at up to 10 percent of a company’s global turnover, which would mean up to $9 billion for Alphabet, Google’s parent company. Google has 90 days to make necessary changes that will create equal opportunity for all competitors. The company has publicly disagreed with the allegations and is considering appealing to the European Court of Justice.
The EU is cracking down on Google, as it is also facing two separate investigations by the European Commission.
Algorithm Update
There is speculation that a Google algorithm update for search engine results occurred around June 25. Google did not confirm the update, but according to SEO experts and several tracking tools, it seems like there has been a change. Many are reporting fluctuations in rankings, both positive and negative. John Mueller, Webmaster Trend Analyst at Google, responded to an inquiry on Twitter about a possible update, saying that updates are made all the time.
Check your website analytics and traffic and see if you notice any major changes to your traffic.