Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Hardbacon’s Struggle with Google is Not Fair Competition
Competition | Aug 29, 2024
Image: Hardbacon
When Google Strikes, Small Businesses Like Hardbacon Pay the Price
Both big and small businesses depend on search engine exposure like Google Search to reach prospective customers. It's a battle for online visibility and with Google controlling 90.8% of the online search market, any changes to their search algorithm can be devastating for businesses relying on online search for survival like Hardbacon whose internet traffic was severely damaged by a recent search modification, such that they were forced into bankruptcy according to a blog post. It's an example of (potential) anti-competitive behaviour that warrants a response by google and investigation by the Competition Bureau in effort to maintain a more equitable digital economy. Especially at a time when Google just lost a major antitrust case for having an illegal monopoly and being deemed a 'monopolist' by US District Judge Amit Mehta.
Hardbacon’s Struggles
Hardbacon, a fintech startup located in Montreal that aggregates investing and financial planning tools, declared bankruptcy recently. Google released a major search update around 'helpful content' in September 2023, which caused Hardbacon to lose 97% of its internet traffic. Since Hardbacon relied heavily on affiliate marketing, the impact of Google's update essentially broke Hardbacon's business model which can be incredibly difficult to come back from, and resulted in layoffs and now the company is in the hands of the trustee. A recent update from Search Engine Roundtable confirmed that it was a major Google upgrade that resulted in Hardbacon's sharp decline in search traffic and the reason for their bankruptcy.
See: It's time to say goodbye
This is a classic case of David and Golaith. Because of Google's monopoly on the search engine industry, even little adjustments to its algorithm can have an amplified impact on companies who rely on organic search traffic. While Google is free to modify its algorithms in order to enhance user experience, there are warranted concerns over the lack of transparency and the detrimental effects on companies such as Hardbacon.
Why Canada’s Competition Bureau Should Get Involved
The Competition Bureau of Canada is responsible for making sure that firms may compete on an even playing field and that markets function fairly. From the surface, it appears that Hardbacon was unfairly disadvantaged by Google's actions, and could file a formal complaint with the Competition Bureau. At a minimum, Canadian competition regulators should examine the case to better understand what's happening to likely thousands of Canadian small businesses and organizations. Hardbacon is advised to initiate discussions with the Competition Bureau to raise awareness and explore potential remedies.
Seek Legal Counsel and Support
While it may be too late for Hardbacon, companies in a similar situation and Hardbacon itself should consider seeking legal counsel from competition attorneys prior to initiating any official discussions with the bureau. It is important to understand the legal environment and implications of bringing a complaint to the bureau when taking on an incumbent giant like Google.
See: Canada’s Competition Consultation Continues (thanks Senator Colin Deacon)
It's also possible that politicians like Senator Deacon will be very interested in this problem. Having a political supporter involved would add a lot of weight to the case and raise the probability that serious action would be taken while also increasing awareness and support for the issue.
Conclusion
Hardbacon's situation is not unique unfortunately. Following Google's adjustments, many small and medium-sized businesses in Canada and throughout the world have seen comparable drops in visitor traffic and thus income. If things continue status quo, it will only stifle innovation and limit the diversity of services available to consumers. While taking it up with the Competition Bureau is an option, seeking legal advice for competitive lawyers is a strategic first step. Fair competition in Canada is worth fighting for!
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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