Yelp has filed an antitrust lawsuit against Google in federal court in San Francisco. The suit alleges that Google has illegally leveraged its monopoly in general search to dominate the local search and local search advertising markets, harming competition and consumer choice.
Key Allegations
Yelp’s complaint accuses Google of engaging in anticompetitive conduct, including:
- Self-preferencing its own "inferior" local search product over competitors
- Driving traffic and revenue away from rivals like Yelp
- Making it harder for competitors to achieve scale
- Increasing costs for rivals
- Limiting consumer choice to grow its market power
The company claims Google’s local listings are "on average, shorter, more prone to error, less subject to quality control, and less likely to be useful to consumers" compared to Yelp and other specialized providers. The lawsuit seeks injunctive relief, monetary damages, and a declaratory judgment that Google’s conduct violates antitrust laws.
Background & Context
This legal action escalates Yelp’s fight against Google’s practices in local search, which extends over a decade. It follows a recent ruling by Judge Amit Mehta, which found that Google illegally maintained its monopoly in general search. Yelp believes the decision provides a foundation for its case.
Key points from Judge Mehta’s ruling include:
- Google was found to be a monopolist that abused its dominant position.
- The company’s paid default agreements with device makers and browsers foreclosed about 50% of the search market from rivals.
- Google’s conduct had anticompetitive effects, including reducing incentives for competitors to innovate.
Aaron Schur, Yelp’s General Counsel, says in a statement, “Judge Amit Mehta’s recent ruling in the government’s antitrust case against Google, finding Google illegally maintained its monopoly in general search, is a watershed moment in antitrust law, and provides a strong foundation for Yelp’s case against Google.”
Potential Remedies
While specific remedies will be shaped by the discovery process, Yelp has pointed to the "Focus on the User" plan as one potential solution. This proposal suggests modifying Google’s search algorithm to surface the best content from across the internet, rather than favoring Google’s own properties.
Looking Ahead
This lawsuit represents the latest chapter in the debate over Google’s search market dominance. Google hasn’t responded to the lawsuit. The company has previously defended its practices as beneficial to users and argued that it faces genuine competition in local search.
Featured Image: MacroEcon/Shutterstock
