Business News

Google to probe claims it’s using Kenyan firm’s database

Kenya-based online business directory firm —Mocality — has referred its dispute with Google to its legal office in South Africa, raising the spectre of the search giant being sued for claiming to be in partnership with the company.   Photo/REUTERS

Kenya-based online business directory firm —Mocality — has referred its dispute with Google to its legal office in South Africa, raising the spectre of the search giant being sued for claiming to be in partnership with the company. Photo/REUTERS 

By LILIAN NDUATI lnduati@ke.nationmedia.com
Posted  Monday, January 16  2012 at  19:47

Internet giant Google has launched investigations into allegations that it was fraudulently using the database of a Kenyan firm to sell a competing product.

Local online business directory company Mocality has accused Google Kenya of engaging in deceptive behaviour.

Google has since apologised to the three-year-old startup, saying that they were mortified to learn that a team of people working on a Google project improperly used Mocality’s data and misrepresented our relationship with Mocality to encourage customers to create new websites”

“Google is jointly carrying out investigations with Mocality, and we want to get to the bottom of this. A public statement will be issued once Google finishes the investigations,” said Google’s Regional Lead for Sub-Saharan Africa, Mr Joe Mucheru said.

Mocality chief executive Stefan Magdalinski confirmed the statement, saying that “Google will get back to us with details later — they are sharing the information that they have with us and we are doing the same.”

“I hope that this will not impact on our business … and it is up to Google to decide how they will help us,” said Mr Stefan. 

In a blog post written Mr Magadalinski on the company’s blog on January 14, Mocality accused Google of attempting to sell their ‘Getting Kenyan Businesses Online (GKBO)” product to business owners listed on Mocality’s site by claiming that the two companies were working together.

“They have been telling untruths about their relationship with us, and about our business practices, in order to do so. As of January 11th, nearly 30 per cent of our database has apparently been contacted,” wrote Mr Stefan.

He claimed that the company started receiving odd calls shortly after the GKBO launch, implying that Google was trying to boost sales of its GKBO product by using Mocality’s database.