Yelp, the popular online review platform, has filed a lawsuit against Google, accusing the tech giant of illegally dominating the local search and local search advertising markets. Yelp claims that Google promotes its own inferior local search product over other providers, stifling competition and increasing costs for rivals. The lawsuit seeks damages, which could be tripled under the 1914 Clayton Act.
This lawsuit comes on the heels of Google’s recent loss in the antitrust case brought by the Department of Justice (DoJ), which alleged an illegal monopoly in search and text advertising. While it remains to be seen if the DoJ’s success will bolster claims like Yelp’s, Google will undoubtedly prefer to avoid further legal battles.
Yelp’s argument centers around Google’s “wilful anticompetitive conduct.” According to Yelp, Google abuses its monopoly in general search to engage in anticompetitive behavior, including self-preferencing its own local search product. This behavior harms competitors by driving traffic and revenue away from them, making it harder for them to scale, and increasing their costs. Yelp argues that Google’s actions degrade consumer choice and unfairly grow its own market power.
Yelp cites Judge Amit Mehta’s recent ruling in the government’s antitrust case against Google as a strong foundation for its own case. Mehta found that Google illegally maintained its monopoly in general search. Yelp seeks injunctive relief and a remedy that prevents Google from self-preferencing in local search.
The harms caused by Google’s self-preferencing are not unique to Yelp, according to Aaron Schur, Yelp’s general counsel. Schur states that Google’s conduct affects other companies as well, and Yelp looks forward to presenting its case in court.
In conclusion, Yelp’s lawsuit against Google adds another chapter to the tech giant’s antitrust troubles. Yelp alleges that Google’s monopoly in search allows it to dominate the local search and local search advertising markets illegally. While the outcome of this lawsuit remains uncertain, it is clear that Google would rather focus on other matters than defending itself in court.
