Yelp has filed an antitrust lawsuit against Google, accusing the tech giant of monopolizing local search services by favoring its own platforms over competitors. This lawsuit comes shortly after a federal judge ruled Google as an illegal monopolist, a decision that has encouraged other companies to take legal action against the search engine leader.
Yelp’s claims focus on Google’s alleged practice of directing users from its general search results to its own local search features, which Yelp argues constitutes illegal tying of separate products to block rivals from growing.
Yelp is seeking a court order to stop Google’s allegedly anticompetitive behavior and to secure damages, demanding a jury trial in the Northern District of California. This district previously ruled against Google in a separate antitrust case involving its app store policies in a lawsuit brought by Epic Games.
Yelp’s CEO, Jeremy Stoppelman, cited the recent victory of the Department of Justice (DOJ) in its antitrust case against Google as a significant factor in Yelp’s decision to proceed with its own legal action. Stoppelman noted that this DOJ win had shifted the landscape of antitrust enforcement, overcoming his earlier reservations about the resources needed for such a lawsuit and the belief that enforcing antitrust laws was primarily the government’s responsibility.
Google Faces Renewed Antitrust Scrutiny
Although the DOJ achieved a notable victory, U.S. District Court Judge Amit Mehta had earlier narrowed the case, dismissing claims by state attorneys general that Google’s search result page designs unfairly reduced the visibility of specialized search engines like Yelp and TripAdvisor.
Google spokesperson Peter Schottenfels responded to Yelp’s lawsuit by arguing that Yelp’s allegations are not new, pointing out that similar claims were previously dismissed by both the Federal Trade Commission (FTC) and Judge Mehta in the DOJ’s case. Google plans to appeal the DOJ ruling and will vigorously defend against Yelp’s claims, which it considers without merit.
Yelp Highlights Impact on Market Competition
Yelp argues that Google’s practices harm both consumers and advertisers. According to Stoppelman in a blog post, by preventing users from leaving Google’s ecosystem, the company stifles competition and innovation in local search services, leading to less motivation for Google to improve the quality of its content.
Yelp also claims that this limits options for local advertisers, effectively forcing them to use Google’s advertising services, which allows Google to charge higher fees. Stoppelman highlighted that Google’s search advertising revenue has increased by 20% or more annually over the past decade, alongside its growing market share.
Yelp’s antitrust concerns with Google are not new. The company has consistently voiced these grievances, including testimony from a senior executive before the Senate in 2020, a complaint lodged with the European Union, and public support for governmental actions against Google.
Featured Image courtesy of Andrew Harrer/Bloomberg
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