Yelp has filed an antitrust lawsuit against Google. As CNN reports, the move caps off years of animosity between the two companies, with Yelp alleging that Google has leveraged its control over online searching to dominate local queries and prioritize its own reviews.
“Google abuses its monopoly power in general search to keep users within Google’s owned ecosystem and prevents them from going to rival sites,” Yelp Co-founder and CEO Jeremy Stoppelman said in a blog post announcing the suit. “This anticompetitive conduct siphons traffic and advertising revenue from vertical search services, like Yelp, that provide objectively higher quality local business content for consumers.”
The US lawsuit could carry extra weight following a Department of Justice case where the judge deemed Google a monopolist over search. The August ruling did not place any sanctions on Google, but it’s likely that Yelp’s case will be the first of many brought by the tech company’s competitors.
In response to a request for comment, a Google spokesperson told Engadget:
“Yelp’s claims are not new. Similar claims were thrown out years ago by the FTC, and recently by the judge in the DOJ’s case. On the other aspects of the decision to which Yelp refers, we are appealing. Google will vigorously defend against Yelp’s meritless claims.”
While this lawsuit centers on the US, Yelp has also been sounding off about Google’s practices overseas. The European Digital Markets Act was meant to loosen some of the company’s stranglehold over search results with rules to prevent massive tech businesses from favoring their own services. But Yelp argued that Google’s attempt at DMA compliance actually made users less likely to leave the Google ecosystem.
In a statement regarding the suit, Yelp’s General Counsel Aaron Schur said:
“Yelp’s antitrust lawsuit against Google addresses how Google abuses its illegal monopoly in general search to engage in anticompetitive conduct, including self-preferencing its own inferior local product, to dominate the local search and local search advertising markets. For years, Google has leveraged its monopoly in general search to pad its own bottom line at the expense of what’s best for consumers, innovation, and fair competition. By willfully engaging in exclusionary, anticompetitive conduct, Google has driven traffic and revenue away from competitors, made it harder for them to scale, and increased their costs, while degrading consumer choice, to grow its own market power.
Judge Amit Mehta’s recent ruling in the government’s antitrust case against Google, finding Google illegally maintained its monopoly in general search, is a watershed moment in antitrust law, and provides a strong foundation for Yelp’s case against Google. In addition to injunctive relief, Yelp seeks a remedy that ensures Google can no longer self-preference in local search. The harms caused by Google’s self-preferencing are not unique to Yelp, and we look forward to telling our story in court.”
Update, August 28, 8:15PM ET: This story was updated after publish to include a comment from a Google spokesperson and an additional comment from Yelp’s General Counsel.
Source: www.engadget.com