Yelp recently filed an antitrust lawsuit against Google, accusing the tech giant of using its monopoly power to dominate local search and advertising markets. The lawsuit comes after a federal judge ruled earlier in the month that Google had violated US antitrust laws with its search business. Yelp has been critical of Google’s search dominance for some time, and the lawsuit alleges that Google has restricted Yelp’s reach after rejecting an offer to buy the platform. Yelp claimed in a blog post that Google is stifling competition and keeping consumers in its own “walled garden.”
The lawsuit, filed in federal court in San Francisco, alleges that Google manipulates search results to promote its own local search offerings, unfairly outperforming its rivals. This means that when users search for local businesses on Google, they are provided with all the information they need without having to click on external sources like Yelp. The complaint states that Google’s actions prevent users from going to rival sites and keep them within its own ecosystem, harming specialized search providers like Yelp, Expedia, Glassdoor, and Zillow.
Yelp claims that Google favors its own local search services because it believes the quality of reviews on Yelp and other platforms is superior. The complaint points to an FTC report that found a significant number of reviews on Google lack text, while Yelp always requires review text on its platform. The lawsuit also highlights Google’s exclusive contracts that have made it the default search engine on various platforms, giving it an unfair advantage over rivals. Google’s high prices in search advertising have reflected its monopoly power, according to the court ruling.
The court’s decision earlier in the month did not establish that Google has a monopoly in search ads, but Yelp argues that Google’s monopoly power encourages local businesses to rely on Google for advertising. This dependence allows Google to charge higher fees to these businesses, further solidifying its dominance in the market. Google has stated its intention to appeal the court decision, maintaining that it provides the best search engine experience for consumers. Meanwhile, Yelp is seeking monetary damages and an injunction to stop Google from engaging in anticompetitive practices that harm its business.
Overall, the antitrust lawsuit filed by Yelp against Google highlights the ongoing concerns around Google’s dominance in the local search and advertising markets. The legal action comes in the wake of a ruling that found Google in violation of antitrust laws and raises questions about the impact of Google’s actions on competition and consumer choice online. The outcome of the lawsuit could have far-reaching implications for how information is accessed and shared online, particularly in relation to local businesses and reviews. As the legal battle unfolds, both Yelp and Google will likely continue to defend their positions and seek a resolution to the dispute.
