Yelp Sues Google for Antitrust Violations, Claiming Monopolistic Control in Local Search
August 29, 2024Yelp's CEO, Jeremy Stoppelman, noted that recent legal victories against Google have motivated the company to pursue this lawsuit, reflecting a shift in the antitrust enforcement landscape.
Yelp's complaint highlights that Google's search results often provide all necessary information directly, which discourages users from clicking on other sources, further diminishing competition.
Despite having superior offerings, Yelp and other local search competitors have experienced stagnant or declining traffic due to Google's self-preferencing behavior.
While Yelp's case presents extensive complaints, it may face challenges, particularly due to a recent ruling that did not classify Google as a monopoly in the search advertising market.
Yelp has initiated an antitrust lawsuit against Google, claiming the tech giant maintains a monopoly in local search by prioritizing its own services over competitors.
The lawsuit follows a recent ruling by a U.S. District Court that found Google's search operations illegal under antitrust laws, which has influenced Yelp's decision to take legal action.
The Department of Justice has also filed antitrust lawsuits against Google, highlighting ongoing concerns about the company's market dominance and exclusionary practices.
Stoppelman emphasized that the changing political climate regarding antitrust issues has made it crucial for Yelp to act against Google's practices.
With Google controlling approximately 90% of the general search market, the company can dictate what consumers see, significantly impacting local search visibility for competitors.
The lawsuit points out that nearly a third of Google searches on desktop and almost half on mobile have local intent, yet Google prioritizes its own local services, leading to zero-click searches.
In response, Google has dismissed Yelp's claims as not new, asserting that similar allegations have been previously rejected by the FTC and a judge in a recent DOJ case.
Yelp argues that strong antitrust laws are necessary to prevent monopolists like Google from abusing their power, advocating for a fairer competitive environment.
Summary based on 15 sources
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Sources
The Verge • Aug 28, 2024
Yelp sues Google for antitrust violationsMashable • Aug 29, 2024
Yelp just slapped Google with a lawsuit. Here’s why.Los Angeles Times • Aug 30, 2024
Yelp versus Google: an antitrust court fight plays out in San Francisco - Los Angeles Times