Yelp CEO said that Google unlawfully leveraged its search engine monopoly.
Yelp further claims that Google manipulates local search results to favour its own services over competitors.
In response to this lawsuit, a Google spokesperson told the Verge, “Yelp’s claims are not new."
Google is in trouble again, a lawsuit is coming its way. Yelp, an online platform that allows users to post and read reviews about local businesses, has now filed a lawsuit against Google accusing it of engaging in anti-competitive practices that have harmed its business. Yelp Co-founder and CEO Jeremy Stoppelman said that the California-based tech giant unlawfully leveraged its search engine monopoly. With this, it leveraged over the local search and local search advertising markets.
As per Yelp, these tactics that Google uses prevent its competitors from achieving scale, and it even damages its advertising process. In the blog post, it further stated, “Google’s conduct suppresses competition in the local search advertising market, ensuring that more local advertisers turn to Google”.
What did Yelp sue Google?
Stoppelman said in a statement, “We aim to prevent Google from engaging in anticompetitive practices so that innovation may flourish”. Yelp further claims that Google manipulates local search results to favour its own services over competitors. This happens even if Google’s services are of lower quality. It further claimed that Google also exempts itself from the quality ranking system that applies to other websites.
Owing to the fact that Google has dominance in the market, it extracts higher fees from advertisers. Because of this its search advertising revenue increased by 20% or more annually over the past decade while still growing its market share.
In response to this lawsuit, a Google spokesperson told the Verge, “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.” He further added, “vigorously defend against Yelp’s meritless claims.”
This is not the first time that Yelp has filed such a lawsuit against Google, it has a history of the same. Back in 2020, a top executive testified before the U.S. Senate about these issues, and Yelp filed a complaint with the European Union over Google’s alleged self-preferencing. It also supported various government agencies in their investigation against Google.
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Mustafa Khan
Mustafa is new on the block and is a tech geek who is currently working with Digit as a News Writer. He tests the new gadgets that come on board and writes for the news desk. He has found his way with words and you can count on him when in need of tech advice. No judgement. He is based out of Delhi, he’s your person for good photos, good food recommendations, and to know about anything GenZ. View Full Profile
