Yelp Google Legal Matter: A Glimpse of What Is to Come
August 29, 2024
This essay is the work of a dumb dinobaby. No smart software required.
Yelp.com is one of the surviving re-inventions of the Yellow Pages. The online guide includes snapshots of a business, user reviews, and conveniences like classifications of business types. The company has asserted that Google has made the finding services’ life difficult. “Yelp Sues Google in Wake of Landmark Antitrust Ruling on Search” reports:
Yelp has spoken out about what it considers to be Google’s anticompetitive conduct for well over a decade. But the timing of Yelp’s lawsuit, filed just weeks after a Washington federal judge ruled that Google illegally monopolized the search market through exclusive deals, suggests that more companies may be emboldened to take action against the search leader in the coming months.
Thanks, MSFT Copilot. Good enough.
Yelp, like other efforts to build a business in the shadow of Google’s monolith has pointed out that the online advertising giant has acted in a way that inhibited Yelp’s business. In the years prior to Judge Mehta’s ruling that Google was — hang on now, gentle reader — a monopoly, Yelp’s objections went nowhere. However, since Google learned that Judge Mehta decided against Google’s arguments that it was a mom and pop business too, Yelp is making another run at Googzilla.
The write up points out:
In its complaint, Yelp recounts how Google at first sought to move users off its search page and out onto the web as quickly as possible, giving rise to a thriving ecosystem of sites like Yelp that sought to provide the information consumers were seeking. But when Google saw just how lucrative it could be to help users find which plumber to hire or which pizza to order, it decided to enter the market itself, Yelp alleges.
What’s an example of Google’s behavior toward Yelp and presumably other competitors? The write up says:
In its complaint, Yelp recounts how Google at first sought to move users off its search page and out onto the web as quickly as possible, giving rise to a thriving ecosystem of sites like Yelp that sought to provide the information consumers were seeking. But when Google saw just how lucrative it could be to help users find which plumber to hire or which pizza to order, it decided to enter the market itself, Yelp alleges.
The Google has, it appears, used a relatively simple method of surfing on queries for Yelp content. The technique is “self preferencing”; that is, Google just lists its own results above Yelp hits.
Several observations:
- Yelp has acted quickly, using the information in Judge Mehta’s decision as a surfboard
- Other companies will monitor this Yelp Google matter. If Yelp prevails, other companies which perceive themselves as victims of Google’s business tactics may head to court as well
- Google finds itself in a number of similar legal dust ups which add operating friction to the online advertising vendor’s business processes.
Google, like Gulliver, may be pinned down, tied up, and neutralized the way Gulliver was in Lilliput. That was satirical fiction; Yelp is operating in actual life.
Stephen E Arnold, August 29, 2024
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