Yelp Sues Google, Accuses Tech Giant of Search Engine Monopoly

Yelp has filed an antitrust lawsuit against Google, accusing the search engine giant of abusing its market dominance to stifle competition in local search and advertising. The lawsuit, filed on Wednesday in federal court in San Francisco, follows a recent ruling by a federal judge that found Google in violation of U.S. antitrust laws regarding its search practices.

Yelp, a platform that allows users to review local businesses, has long expressed concerns about Google’s influence in the search market. The lawsuit claims that Google manipulates search results to favour its own local search services, thereby undermining competitors like Yelp. Yelp argues that this practice keeps users within Google’s ecosystem, preventing them from accessing higher-quality reviews and information available on rival sites.

“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 announcing the lawsuit.

Google’s response to the lawsuit has been dismissive, with a spokesperson calling Yelp’s claims “meritless” and pointing out that similar accusations have been previously rejected by the Federal Trade Commission (FTC) and in other legal cases. “Yelp’s claims are not new. We are appealing the recent decision, and Google will vigorously defend against Yelp’s meritless claims,” the spokesperson added.

The lawsuit highlights the broader implications of Google’s dominance in search. Yelp alleges that when users search for local businesses, Google’s manipulation of results keeps them from visiting external sites like Yelp, Expedia, Glassdoor, and Zillow, which are mentioned in the complaint as competitors that could challenge Google on an equal playing field.

Yelp’s lawsuit also references an FTC report, noting that 32% of reviews on Google lack text, contrasting with Yelp’s platform, where review text is mandatory. Yelp contends that Google’s actions have harmed its business by reducing traffic, lowering advertising revenues, and increasing operational costs.

The legal action seeks monetary damages and an injunction to prevent Google from continuing its alleged anticompetitive practices. This lawsuit marks another significant challenge for Google, as it continues to face scrutiny over its business practices and market power.