As reported by CNN, Yelp has taken legal action against Google by filing an antitrust lawsuit on August 28th, accusing Google of leveraging its monopoly position to dominate local search and advertising markets. This move comes in the wake of a recent ruling by a federal judge, which found Google in violation of US antitrust law due to its search business, paving the way for Yelp's lawsuit.
Yelp, a major tech company specializing in user-driven reviews of local businesses, has expressed longstanding concerns regarding Google's search dominance. The company outlined its grievances in the lawsuit, alleging that Google had hindered Yelp's reach after rejecting an acquisition offer from the tech giant.
In an online blog post on August 28th, Yelp asserted, "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."
Following the court's ruling against Google, Yelp's lawsuit represents one of the initial actions taken as US District Judge Amit Mehta characterized Google as a "monopolist." A spokesperson for Google responded to Yelp's claims, stating, "Yelp’s claims are not new. Similar claims were thrown out years ago by the FTC (Federal Trade Commission), and recently by the judge in the DOJ’s (Department of Justice’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."
The lawsuit, filed in federal court in San Francisco, alleges that Google manipulates search results to prioritize its own local search offerings, thereby gaining an unfair advantage over its competitors.
Yelp contends that this practice prevents users from accessing information from outside sources like Yelp when conducting searches related to local businesses.
Apart from Yelp, the complaint identifies other specialized search providers such as Expedia, Glassdoor, and Zillow as posing threats to Google on an equitable playing field. The statement from Yelp asserts, "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 also points out the purported disparity in the quality of reviews between its platform and Google, citing an FTC report indicating that a significant portion of reviews on Google lack accompanying text, whereas Yelp requires text for all reviews.
The lawsuit further delves into Google's strategic business maneuvers, highlighting the company's substantial investments in exclusive contracts to establish itself as the default search engine worldwide. Additionally, the complaint addresses Google's pricing strategies in search advertising, emphasizing the alleged influence of its monopoly power.
In response to the court's ruling, Google expressed its intention to appeal and emphasized the recognition of Google as the internet's leading search engine. Meanwhile, Yelp outlined the adverse impact of Google's actions on its business, including decreased traffic, reduced advertising revenues, and increased operational costs.
As part of its legal recourse, Yelp seeks monetary damages and an “injunction prohibiting Google from continuing to engage in the anticompetitive practices.”
Comentarios