Yelp filed an antitrust lawsuit against Google. As CNN reports, the move caps a years-long feud between the two companies, with Yelp saying Google used its control over online search to control local queries and prioritize its reviews.
“Google is abusing its dominant position in traditional search to keep users within the Google ecosystem and prevent them from going to competing sites,” Yelp Co-founder and CEO Jeremy Stoppelman said in a blog post announcing the lawsuit. “This anti-competitive behavior reduces traffic and advertising revenue from direct search services, such as Yelp, which provide high-quality local business content to consumers.”
The US case may have more weight following the case of the Department of Justice in which the judge took Google as the search capital. The August ruling did not impose sanctions on Google, but Yelp’s lawsuit is likely to be the first of many brought against the tech company’s rivals.
In response to a request for comment, a Google spokesperson told Engadget:
“Yelp’s claims are not new. Similar claims were dismissed years ago by the FTC, and more recently by a judge in a DOJ case. In other aspects of the decision Yelp refers to, we appeal. Google will vigorously defend itself against Yelp’s frivolous claims.”
Although the case is focused on the US, Yelp has been critical of Google’s practices overseas. The European Digital Markets Act was intended to loosen corporate interference in search results through rules to prevent big tech companies from bidding on their services. But Yelp argued that Google’s effort to comply with the DMA actually made users less likely to leave the Google ecosystem.
In a statement about the lawsuit, Yelp General Counsel Aaron Schur said:
“Yelp’s antitrust lawsuit against Google alleges how Google abused its illegal monopoly over general search to engage in anti-competitive conduct, including favoring its inferior local product, to dominate the local search and local search advertising markets. For years, Google has used its monopoly on traditional search to achieve its own priorities at the expense of what’s best for consumers, innovation, and fair competition. that they succeed. measure, and increase their costs, while degrading consumer choice, increasing its market power.
Judge Amit Mehta’s recent ruling in a federal antitrust case against Google, finding Google illegally maintained a monopoly on general search, is a critical moment in antitrust law, and provides a solid foundation for Yelp’s case against Google. In addition to the legal success, Yelp is seeking a remedy that ensures Google will no longer have a choice in local searches. The harm caused by Google’s discretion is not limited to Yelp, and we look forward to telling our case in court.”
Update, August 28, 8:15PM ET: This story was updated after publication to include comments from a Google spokesperson and additional comments from Yelp’s General Counsel.
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