Google has apologized — via Google+ and by phone — to the CEO of an African startup whose databases were compromised by a Kenya-based team working for Google.
Nelson Mattos, Google’s vice president for product and engineering for Europe and emerging markets, stated on his Google+ account: “We 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 contractors were accessing the call lists of Mocality — Kenya’s largest mobile business directory — and stealing away customers. CEO Stefan Magdalinski stated that he found the situation “saddening” as an “admirer of Google.”
Last week, Mocality accused Google on its official blog of luring customers with dishonest tactics and lies. Google employees contacted more than 30% of the startup’s list of customers, a large network with more than 100,000 businesses.
Mocality provides businesses that have a valid mobile number or email with free SMS, a contact list, free mobile website, free mobile business cards and a showcase for products and services.
“[Google has] been telling untruths about their relationship with us, and about our business practices, in order to do so,” Magdalinski said. “Google isn’t just scalping us, they’re also scalping every Kenyan who has participated in our program.”
Google started the Getting Kenyan Businesses Online (GKBO) initiative in September 2011. Google GKOB offers free and subsidized services in the same range of Mocality — free web address, online business listing, tips and education.
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As both initiatives grew, Mocality noticed people were visiting their contact lists during business hours from a single IP address. Odd calls were also being placed to customers. Confused callers would call Mocality back about topics never discusses with the startup.
Mocality employees decided to do some investigative work, setting up dummy numbers, and found out that employees from Google’s GKBO were calling prospective customers and current Mocality customers, identifying themselves as GKBO employees partnered up with Mocality.
Turns out these Google Africa contractors were lying to customers about a Mocality and Google partnership, so they could sell them GKBO products instead. Mocality also claims that these Google contractors falsely told prospective customers that Mocality charged an absurd rate of $200 for business listings. See the video above for more details about the case.
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