Yelp Files Antitrust Lawsuit Against Google, Citing Local Search Dominance
Google’s dominance over local search and local search advertising has come under scrutiny once again as business review platform Yelp files an antitrust lawsuit against the tech giant. Yelp alleges that Google prioritizes its own local search product over competitors, stifling competition and degrading the quality of search results. This lawsuit comes on the heels of a landmark ruling by U.S. District Judge Amit Mehta, who declared Google a monopolist in an antitrust case brought by the U.S. Justice Department. Yelp’s CEO, Jeremy Stoppelman, accuses Google of abusing its monopoly in general search to dominate the local search and local search advertising markets.
Google’s Grip on Local Search
When performing a local search on Google, whether for a nearby restaurant or plumbing service, Google’s local search information is unavoidable. Google reviews, star ratings, contact information, business hours, and more are all readily available on the search results page. On mobile devices, this information is often the first and only thing visible until the user scrolls down. Yelp argues that Google manipulates search results to promote its own local search offerings above competitors, regardless of their quality. This tactic leads to a lack of clicks on competitor links, as Google’s local search product provides all the necessary information directly on the search page.
Anticompetitive Practices and Google’s Response
Yelp’s lawsuit against Google highlights numerous previous cases and fines related to the tech giant’s anticompetitive practices. It also includes quotes from Google executives, such as Marissa Mayer, former VP of search products, who admitted that Google would prioritize its own products in search results. Yelp’s General Counsel, Aaron Schur, sees Judge Mehta’s ruling as a turning point in antitrust law, providing a foundation for Yelp’s case against Google. Yelp seeks a remedy that ensures Google can no longer self-preference in local search.
Implications and the Way Forward
Yelp’s antitrust lawsuit against Google signals a potential opening for other companies to challenge Google’s dominance in various sectors. The ruling against Google by Judge Mehta has emboldened Yelp and may inspire other businesses to take legal action. Google’s response to Yelp’s lawsuit remains unknown, but the outcome of this case could have significant implications for the future of competition in local search. As the legal battle unfolds, it is evident that Google’s control over search results and its alleged anticompetitive practices will continue to be subject to scrutiny and potential regulatory action.