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Yelp has filed an antitrust lawsuit against Google, accusing the company of abusing its monopoly over its search services.
What’s the deal: Yelp is suing Google, accusing it of misusing its monopoly on search services to favor its own local search products over competitors like Yelp. The complaint states that Google has been diverting traffic from Yelp and others to its “inferior” local search service, causing a drop in traffic, lower advertising revenue, and higher costs for competitors. Yelp argues that Google’s actions have not only stifled competition but also lowered the quality of local search results for consumers by prioritizing its own less relevant services.

Google previously ruled a monopoly: Earlier this month, a federal judge ruled that Google illegally maintained its monopoly in online search and text advertising. The ruling found that Google’s exclusive deals with partners like Apple, making Google the default search engine, effectively blocked competitors from gaining the scale to compete. Following the decision, many anticipated that more companies might file lawsuits against Google.
What lawyers for Yelp are saying: In a statement, lawyers for Yelp said, “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.”
What Google is saying: In a statement, Google spokesman Peter Schottenfels said, “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.”