Google Sued by Yelp for Unfair Practices in Local Search
Yelp has filed a lawsuit against Google, accusing the tech giant of using its dominance in the search engine market to engage in unfair practices that harm local search competitors.
Yelp, a platform that provides reviews and information about local businesses like restaurants and cleaning services, took legal action against Google in a federal court in San Francisco. The crux of Yelp’s argument is that Google has abused its monopoly in the general search market to dominate local search and local search advertising, ultimately degrading the quality of search results and suppressing competitors to strengthen its market position.
Yelp’s CEO, Jeremy Stoppelman, voiced these concerns in a post on Yelp’s website, stating, “Google has abandoned its mission to deliver the best information to users. Instead, it has used its monopoly power to dominate the local search market, which has harmed consumers, competitors, and advertisers.”
Stoppelman highlighted that Google’s control over both general and local search results, especially on mobile devices, allows it to steer users toward its own listings. This, according to Yelp, not only hurts competition but also limits consumer choice.
In response to these allegations, Google dismissed the claims as “not new.” A Google spokesperson, Peter Schottenfels, pointed out that similar accusations were previously rejected by the Federal Trade Commission (FTC) and a judge in the Department of Justice’s (DOJ) case. He emphasized that Google will “vigorously defend against Yelp’s meritless claims.”
However, Yelp contends that its claims have never been properly addressed in court. Yelp’s general counsel, Aaron Schur, argued in an emailed statement that Google harms competition in the local search market by favoring its own lower-quality offerings and securing exclusive, billion-dollar deals with web browsers and device manufacturers.
One of the key reasons for Yelp’s lawsuit is a recent federal judge’s ruling in a separate monopoly case against Google. In that case, the judge found that Google maintained its monopoly by engaging in practices like paying companies to make Google the default search engine on devices such as smartphones. The outcome of this ruling is still uncertain, but it could lead to significant changes, including the possibility of the government forcing Google to break up its search business.
Over the past year, Google has faced numerous legal challenges, including class-action lawsuits and settlements related to browser privacy, tracking, and the handling of user search data. Two years ago, the company lost an appeal in Europe over antitrust issues related to its Android mobile operating system.
The ongoing legal battles highlight the growing concerns about Google’s market power and its impact on competition in the tech industry. The outcome of Yelp’s lawsuit could have significant implications for how local search and advertising markets operate in the future.
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