Babylon’s come-uppance; Babylon is paying the price for years of transgressing every unwritten rule of the Internet

Babylon’s come-uppance

Babylon is paying the price for years of transgressing every unwritten rule of the Internet.

30 October 13 19:13, Doron Avigad

With all due sympathy for investors in Babylon Ltd. (TASE:BBYL), who have suffered a 60% plunge in the company’s share price following the cancellation of the agreement with Google, it must be said that Babylon the company, its products, its marketing strategy is getting today exactly what it deserves for years of straying from the path of straight dealing with consumers.Once, when the world was a slightly more beautiful and innocent place, Babylon had great products for translating at a click between a range of languages that kept growing. It seemed that it had something global, almost cosmic, as implied by its scriptural name. But almost nothing is left of that Babylon. True, it still has translation tools, perhaps in a greater range of languages than ever, but Babylon today is one of the most loathed brands on the web. Yes, it is. It happened to it because of a welter of aggressive marketing methods, and mainly because of its search toolbar, which became one of the stickiest chewing gums on the Internet.

What has ended, perhaps, in a protest by Google Chrome and Yahoo! users began with Babylon’s attempts to install its toolbar with as many users as possible. These attempts included several dubious methods, such as taking over browsers and diverting surfers to the services of, wouldn’t you know it, Babylon.

So, for example, many surfers found that when they tried to search on Google, their browsers took them to search.babylon.com. Babylon’s predatory tendencies also manifested themselves in homepages being switched to its own. But, as far as surfers are concerned, the main problem was and remains Babylon’s appalling search toolbar, which has simply committed every consumer no-no as far as function and transparency are concerned.

The right to split up

This toolbar, as anyone who has ever installed it, whether voluntarily or by mistake (if you go to some sites, Babylon fiendishly installs itself without you being aware of what you did to make that happen), refuses to take its leave, however politely you ask. One of the iron-clad clauses in the unwritten contract between users and program providers states as follows: “If I don’t fancy you anymore, you will let us part as friends”. That is to say, if the user installs a program on his or her computer and later wishes to remove it, whoever produced it is supposed to provide an unequivocal, complete, and fast “uninstall” option.

None of this happens with the Babylon toolbar. With most legitimate programs, it’s enough to go to “Control Panel”, choose “Add/Remove Programs”, click on the program you want to get rid of, wait a bit, and you’re done. With Babylon, this procedure only removes the program from the Desktop. On the browser, it carries on as if nothing had happened.

At this stage, surfers are supposed to realize by themselves that they have to remove Babylon separately from each browser. In many cases they also have to restore their homepage, and to be free of Babylon completely they are liable to need to do some pretty complicated stuff that we won’t get into.

PC Magazine pointed out that the best way of protecting oneself from applications like Babylon is not to install them. This apparently is the conclusion somewhat belatedly reached by many Chrome and Yahoo! users. From there, the way to a decision by the managements of these giants may not have been short, but it was absolutely inevitable.

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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