Yelp has filed an antitrust lawsuit against Google, following a federal judge's ruling that deemed Google an illegal monopolist. Yelp accuses Google of maintaining its monopoly in local search services by favoring its own inferior vertical over competitors, which Yelp claims harms competition and reduces the quality of local search services. Yelp argues that Google's practice of directing users to its own local search results from its general search engine constitutes illegal tying of separate products, preventing rivals from scaling.
Yelp is seeking a court order to stop Google's alleged anticompetitive behavior and to receive damages. The lawsuit, filed in the Northern District of California, demands a jury trial. This move was encouraged by the DOJ's recent antitrust victory against Google over exclusionary practices in search service distribution.
Historical Context and Previous Claims
Yelp CEO Jeremy Stoppelman noted that the DOJ's win has shifted the antitrust landscape, making it more feasible for companies like Yelp to pursue legal action. However, similar claims by Yelp have been dismissed in the past by the FTC and more recently by a judge in the DOJ's case. Google spokesperson Peter Schottenfels stated that Yelp's claims are not new and that Google will vigorously defend against them.
Yelp argues that Google's actions ultimately harm consumers by reducing competition, which leads to lower-quality content and less relevant search results. This, in turn, affects advertisers, as the lack of competition allows Google to charge higher fees. Yelp claims that Google's search advertising revenue has increased by 20% or more annually over the past decade while still gaining market share.
Yelp has a history of raising antitrust issues against Google, including testifying before the Senate in 2020 and filing complaints in the European Union. Yelp has consistently supported government actions against Google's alleged self-preferencing practices.
