Yelp files antitrust case against Google, alleging local search monopoly

Yelp, an online platform for local business reviews, has filed an antitrust lawsuit against Google in federal court in San Francisco. The lawsuit accuses Google, the largest search engine in the world, of using its dominant position in general search to stifle competition in local search and local search advertising markets.

Jeremy Stoppelman, (pictured), Co-founder and CEO of Yelp, stated, "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 argues that Google has illegally abused its monopoly in general search to dominate local search, engaging in conduct that has degraded the quality of search results and disadvantaged rivals to maintain its market power.

According to Yelp, Google's practices have resulted in the exclusion of competing services from its search results, even when they provide higher quality information. Yelp's lawsuit aims to protect consumer choice, recover damages, and prevent Google from engaging in further anticompetitive practices.
Google's Alleged Unlawful Conduct in Local Search

Google holds an estimated 90% share of the general search market, giving it substantial influence over adjacent markets, including local search. Yelp claims that Google manipulates search results to promote its own local search services over those of competitors like Yelp. For instance, Google places its local results above those from rival platforms, regardless of the relative quality.

On desktop, nearly a third of the approximately 9 billion daily Google searches have local intent, with the proportion rising to almost half on mobile devices. Yelp alleges that Google manipulates these results to drive traffic to its own services, contributing to the phenomenon of "zero-click searches," where users remain on Google's search results page without visiting external sites.
Consumer and Advertiser Impact

Yelp contends that Google's practices harm both consumers and advertisers. Consumers are kept within Google's ecosystem, often receiving lower-quality search results. Additionally, other vertical search services are unable to achieve scale, diminishing their ability to reach customers and provide superior content. This reduction in competition also limits advertisers' options, allowing Google to charge higher fees with little consequence.

The lawsuit highlights Google's past conduct, including scraping reviews from Yelp and other local search services and misrepresenting that content as its own. Google only ceased these practices following a Federal Trade Commission (FTC) investigation in 2011.
Global Recognition of Google’s Unlawful Practices

Yelp's lawsuit aligns with findings from courts and regulatory bodies worldwide. A federal judge in Washington, D.C. recently concluded that Google has unlawfully maintained its monopoly in the general search market. Additionally, the European Commission fined Google $2.6 billion in 2017 for favoring its shopping recommendations over those of competitors, and investigations are ongoing under the Digital Markets Act. Similar rulings have been issued in Turkey and the United States.
Seeking a Competitive and Fair Internet

Yelp calls for an internet where competition and innovation can flourish. The company advocates for Google to match consumers with the best possible local search information by ranking its content alongside other third-party providers using its organic search algorithm.

"For 20 years, Yelp has focused on our mission to connect consumers with great local businesses," Stoppelman emphasized. "We believe our lawsuit takes a critical step towards a level playing field in which Yelp and other local search providers can effectively compete, and provide consumers with the best local search experience."

The lawsuit seeks to establish a fair marketplace where Google does not exploit its position as both the dominant provider of general search results and the curator of its own local content.