Judge Allows Yelp’s Antitrust Lawsuit Against Google to Proceed

In a significant legal development, a federal judge ruled Tuesday that Yelp’s antitrust claims against Google will move forward, potentially opening the door for a broader examination of the tech giant’s dominance in local search and advertising markets.

Yelp initiated the lawsuit last August, accusing Google of unlawfully leveraging its dominance in general search to suppress competition in local search services. According to Courthouse News, the suit alleges that Google prioritizes its own local reviews and business listings in search results, pushing down more accurate or relevant listings from competitors like Yelp.

The 66-page complaint outlines Yelp’s position that Google has consistently failed to develop a competitive local search service but instead relies on its established monopoly in general search to steer traffic away from rivals. Yelp argues this practice not only stifles competition but also violates federal antitrust and unfair competition laws.

In a 33-page ruling, U.S. Magistrate Judge Susan van Keulen rejected Google’s request to dismiss the case, stating that Yelp had sufficiently alleged a “dangerous probability” that Google holds monopoly power in the local search services market. As reported by Courthouse News, the judge referenced market share data, noting Yelp’s claims that Google commands more than 90% of this space. Supporting evidence cited in the ruling includes a 2022 study showing a 73% increase in Google’s local review share compared to a mere 6% growth for Yelp, and a 2019 report stating that 77% of consumers turned to Google to find nearby businesses.

Related: Inside the Yelp Suit: Allegations of Google’s Abuse of Search Power

Google argued the lawsuit was time-barred, contending that any potential antitrust violations occurred outside the statute of limitations. However, Judge van Keulen concluded it was too early in the legal process to make that determination, especially given uncertainties about when Google’s market dominance may have become unlawful.

Yelp’s claims also extend to the local search advertising market. The company alleges that Google holds a dominant position here as well, bolstered by its extensive access to user data, which presents a significant barrier to new entrants. Per Courthouse News, Judge van Keulen noted that Yelp plausibly alleged Google controls more than 50% of the local search ad market by revenue and that this share is growing—an assertion deemed adequate for the case to proceed under antitrust standards.

Source: Courthouse News