August 29, 2024 – Yelp, the popular American consumer review platform, has filed an antitrust lawsuit against Google on Wednesday, accusing the tech giant of leveraging its dominant position to dominate the local search and advertising landscape. This legal action marks a significant escalation in Yelp’s long-standing grievances against Google’s search hegemony.
In the complaint, Yelp alleges that Google has consistently hindered its growth since the latter declined to acquire the former. Jeremy Stoppelman, Yelp’s co-founder, and CEO, voiced these concerns in a blog post announcing the lawsuit. “Google’s abuse of its monopoly power in general search has trapped users within its ecosystem, stifling access to competitor websites,” he stated. “This anticompetitive behavior siphons traffic and advertising revenue from vertical search services like Yelp, which objectively offer consumers higher-quality local business content.”
Yelp further contends that Google manipulates search results to promote its own local search offerings whenever users seek local information, unfairly surpassing competitors. Consequently, when individuals search for a nearby restaurant, Google utilizes its monopoly clout to furnish them with a comprehensive array of information—from directions to operating hours to reviews—negating the need for external sources like Yelp.
“Put simply, Google’s monopolistic grip on general search confines users to its own ecosystem, barricading access to competitor sites,” the statement asserts.
Yelp claims that Google’s tactics stem from the superior quality of reviews hosted on its platform and other services. Additionally, Yelp (which also sells local search ads) argues that Google’s monopoly attracts local businesses reliant on advertising, enabling it to charge exorbitant fees.
The lawsuit seeks both monetary damages and an “injunction” to prohibit Google from engaging in further anticompetitive practices.
In response, a Google spokesperson issued a statement on Wednesday, stating, “Yelp’s allegations are not new and have been dismissed by federal regulators, including the Federal Trade Commission (FTC) and judges in recent Justice Department (DOJ) cases. Regarding other aspects of the claims Yelp has raised, we will vigorously defend ourselves against these baseless accusations.”
