Yelp Takes Legal Action Against Google Over Antitrust Concerns
Following a recent ruling by the U.S. District Court for the District of Columbia that labeled Google as a monopolist, Yelp, Inc. has filed a lawsuit against the tech giant in the Northern District of California. The lawsuit, under Section 2 of the Sherman Act and California’s Unfair Competition Law, accuses Google of engaging in anticompetitive practices to monopolize the markets for local search services and local search advertising.
Yelp alleges that Google has strayed from its original mission of providing unbiased and impartial information to consumers. Instead, Google is accused of prioritizing its own low-quality local search content over competitors like Yelp. The complaint outlines various anti-competitive tactics employed by Google, including stealing information from Yelp’s website, favoring Google’s own local search results, implementing a “OneBox” feature to showcase Google’s services at the top of search results, and manipulating algorithms to steer users away from Yelp.
The lawsuit seeks injunctive relief, monetary damages, restitution, interest, attorney fees, costs, and a declaratory judgment that Google’s conduct violates antitrust laws. One key example cited in the complaint is the way Google’s practices have led to the crowding out of Yelp in search results. By placing Google products like OneBox at the top of search pages, organic search results are pushed out of view, particularly on mobile devices where users must scroll through multiple screens to find relevant information.
The complaint references a recent ruling by Judge Amit Mehta to support the argument that general search services in the U.S. constitute a relevant antitrust market. While the court found that Google does not have a monopoly in search advertising, it acknowledged Google’s dominance in general search services. Yelp contends that Google’s success in diverting users away from Yelp has negatively impacted its advertising revenue, increased costs to compete, and hindered its ability to improve content and remain competitive in the market.
The lawsuit outlines seven counts against Google, including monopolization of the local search services market, attempted monopolization of the local search services market, unlawful tying of local search services to general search services, and violation of California’s Unfair Competition Law. With approximately 95% of its revenue coming from local search advertising, Yelp argues that Google’s actions have severely impacted its business operations.
In light of these allegations, Google has announced plans to appeal the court’s decision. As the legal battle between Yelp and Google unfolds, the implications for the tech giant’s business practices and the broader landscape of online search and advertising remain uncertain. Stay tuned for updates on this developing story.
