Yelp files lawsuit against Google for local search dominance
What's the story
Yelp, a renowned platform for local business reviews and searches, has initiated legal action against Google. The lawsuit accuses Google of being the "largest information gatekeeper in existence" and dominating local search results. Yelp's aim is to enhance the usefulness of Google's local search experience for users, and establish fair competition among vertical search services.
Legal objectives
Aim to protect competition and consumer choice
The lawsuit is part of Yelp's broader effort to safeguard competition, protect consumer choice, recover damages, and prevent Google from engaging in anti-competitive practices. The company believes that this will allow innovation to thrive. On a website dedicated to the lawsuit, Yelp alleges that Google's "illegal self-preferencing in the local search market has significantly harmed consumers and stifled innovation."
Quality concerns
Yelp accuses Google of degrading local search quality
Yelp accuses Google of "degrading local search quality" and asserts that a significant number of reviews on Google are "consisting of only star ratings with no text." The company argues that this practice is "less helpful" and something it prohibits on its own platform. In an interview with The New York Times, Yelp CEO Jeremy Stoppelman revealed that their decision to sue was influenced by Google's recent loss in a major US antitrust lawsuit.
Defense stance
Google refutes Yelp's claims as 'meritless'
In response to the lawsuit, Google referred to a previous legal decision where similar claims by Yelp were dismissed by the Federal Trade Commission (FTC) in 2013. A spokesperson for Google stated, "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." The company plans to appeal other aspects of this decision and "vigorously defend against Yelp's meritless claims."
AI focus
Lawsuit also highlights Google's AI search results
Interestingly, Yelp's lawsuit also mentions Google's AI search results for quotes about its dominance in local search. This aspect of the case underscores the technological dimensions of the dispute between the two companies. It adds another layer to Yelp's allegations against Google, further complicating the ongoing legal battle over local search dominance.