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Yelp vs. Google: How This Lawsuit Could Change the Internet

by Raj Dixit
August 29, 2024 - Updated On August 30, 2024
in Business, Education, Entertainment, Events, Investing, Learning, Market, Markets, News, Politics, Popular, Story, Tech
Reading Time: 3 mins read
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Yelp sues Google
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Have you ever typed a restaurant in your area and probably the reviews, direction and times they are open, you get all this from Google without having to move to another page? If you have, you’re not alone, and that’s exactly what Yelp is complaining about in a new lawsuit against google. 

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Yelp, a website, where individuals share feedback about local businesses, has therefore approached the courts to challenge Google arguing that the tech giant is using its dominance in the global search engine market to ensure that internet users are unable to access information in review and other sites like Yelp.

The Allegations: Information Monopoly

Yelp alleges that Google has been using its search dominance to control local search and advertising markets. In other words, Yelp maintains that Google prioritizes its own offerings and hinders other players, such as Yelp, from having a reasonable chance.

Yelp claims that this ‘walled garden’ of Google ‘locks people in’ and decreases the amount of traffic to Yelp and other similar sites that depend on people being propelled to them by the search engine.

Yelp’s lawsuit is not just about feeling cut from the search engine party. Yelp wants to prove that algorithms proposed by Google have a negative impact on their business because it diminishes the number of visits, decreases the funds received on the advertisements, and even raises the costs for Yelp. Yelp is not seeking a few bucks to fix something up; they are seeking to enjoin Google from what they term anticompetitive practices.

Google’s Defense

That is not the first time Google has faced these kinds of accusations. A representative for Google dismissed Yelp’s concerns as something that has been known for years. They pointed out that such allegations were earlier thrown out by the Federal Trade Commission (FTC) several years back and were recently separated by even a judge in a Department of Justice case. 

However, Google is not just passive in this issue; they have stated that they intend to defend themselves against Yelp and reverse any unfavorable decisions.

Why Does Yelp Care So Much?

Yelp claims that it has better reviews for the businesses as compared to Google. Yelp noted that only two of the primary kind, and 32 percent of all, the reviews on Google do not contain any text. And while Yelp bars so-called Filtered Reviews, a system without detailed text is impossible for everyone. Therefore, in the words of the ever gratifying Yelp, if you want the real deal, check out their site. It has become indisputable as the largest search engine; however, due to its influence, hardly anyone gets the chance to read those reviews on Yelp.

The Bigger Picture: These Are the War Over Search Dominance

This suit emerged soon after a ruling of US District Judge Amit Mehta who referred to Google as a monopolist in the search engine business. This ruling created an opportunity for Yelp and other similar companies to attempt to challenge Google. What about the contracts Google has with these partners including Apple that ensure Google retains the set search engine default for most devices thus denying competitors Bing, DuckDuckGo, even this client, Yelp.

Google has over the years employed a heavy wallet towards cementing its dominance in the search realm—yes, check out those billions of dollars on exclusive deals! Specialty search providers such as Yelp along with traveling search providers like Expedia and real estate search providers like Zillow are getting pinched. Critics have stated that because of the huge market share Google enjoys, organizations cannot hope to match it.

Tags: antitrust lawsuitsdigital competitionGoogle antitrustGoogle business practicesGoogle lawsuitGoogle search dominanceGoogle vs competitorslocal search advertisingonline reviewssearch engine monopolysearch engine warsTech newsYelp lawsuitYelp newsYelp vs Google
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