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Yelp filed an antitrust lawsuit against Google on Wednesday, accusing the tech giant of using its monopoly power to dominate local search and advertising markets, thus stifling competition and harming rival platforms.
The lawsuit, filed in federal court in San Francisco, comes on the heels of a federal judge’s ruling in August that found Google in violation of U.S. antitrust laws related to its search business. Yelp, a platform known for user reviews of local businesses, has long argued that Google unfairly limits its reach, particularly after Google declined to buy Yelp.
“Our case is about Google, the largest information gatekeeper in existence, putting its heavy thumb on the scale to stifle competition and keep consumers within its own walled garden,” Yelp stated in a blog post on Wednesday.
The lawsuit alleges that Google manipulates search results to favour its own services over those of competitors like Yelp. When users search for local businesses, Google reportedly promotes its search offerings, allowing it to capture the user’s attention without directing them to third-party platforms such as Yelp. Yelp claims this monopolistic behaviour harms its business by decreasing the traffic to its site, reducing ad revenue, and raising costs.
Yelp also cites evidence suggesting that its reviews are of higher quality than Google’s, noting that 32% of reviews on Google lack text, whereas Yelp requires written feedback from users.
In response to the lawsuit, a Google spokesperson dismissed Yelp’s claims as outdated, noting that similar accusations had been rejected by the Federal Trade Commission (FTC) and in recent court cases. “Google will vigorously defend against Yelp’s meritless claims,” the company said.
Yelp is seeking monetary damages and an injunction to prevent Google from continuing its alleged anticompetitive practices.
Source: CNN
