Movies

Yelp versus Google: an antitrust court fight plays out in San Francisco

BBG News

Yelp versus Google: an antitrust court fight plays out in San Francisco
San Francisco —

As a seasoned observer of the tech industry, I find myself captivated by the ongoing saga between Yelp and Google. For years, I’ve watched these two giants navigate the digital landscape, each carving out their own niche. However, it seems that Google’s dominance in search results has become a bone of contention for Yelp.

For quite some time now, Yelp has voiced concerns over Google’s methods, claiming that the tech colossus often prioritizes its own services over those of competitors in search result rankings on Google.

According to Yelp, when a user looks for “restaurants in Brooklyn,” Google tends to place its own synopsis and ratings ahead of unpaid listings from competitors such as Yelp. This practice potentially leads to less traffic and advertising income for businesses like Yelp.

A San Francisco-based company, known for gathering customer feedback through online reviews, has recently filed a high-profile federal lawsuit concerning complaints, creating ripples in the tech hub of Silicon Valley.

This week, Yelp has initiated a lawsuit claiming that Google is in breach of U.S. antitrust regulations. They assert that Google unlawfully obtains data from Yelp’s website, representing it as their own, and manipulates its algorithm to direct customers away from Yelp.

Google’s actions have negatively impacted Yelp by decreasing website traffic, lowering advertising income, increasing Yelp’s expenses, and weakening the beneficial network effects from having less new and recurring users, as stated in Yelp’s legal complaint.

Google has discarded these allegations as unfounded, pointing out that back in 2013, the Federal Trade Commission determined that Google had not violated antitrust laws and had not caused any harm to consumers.

“Google will vigorously defend against Yelp’s meritless claims,” the company said in a statement.

Legal analysts predict this lawsuit could be the initial instance of multiple lawsuits directed at Google, the tech giant based in Mountain View, currently under increased examination for its business conduct. This development follows closely on the heels of a federal court decision that found Google guilty of violating antitrust regulations and functioning as a monopoly in web searches. Consequently, companies like Yelp, among others, may now file lawsuits against Google, alleging antitrust misconduct.

In my perspective as a movie reviewer, I’d rephrase it like this: “In an interview, Aaron Schur, Yelp’s legal advisor, expressed that the decision was revolutionary in antitrust law. To us, it provided a robust base to present in court that Google, acting as an illegal monopolist in general search, is misusing its power to also control both the local search market and the local search advertising market by favoring itself.”

As a movie buff, I can’t help but draw parallels between recent events in the world of antitrust law and the evolution of cinema. This month, U.S. District Judge Amit Mehta made a decision that’s as groundbreaking as the rise of independent filmmakers challenging Hollywood giants. Historically, antitrust law has been employed to check the dominance of big oil and railroad companies, with the aim of preventing them from growing so large that they would impact consumer prices. Now, it seems we’re witnessing a similar shift, where this law is being applied to new realms, such as technology and entertainment industries. It’s an exciting time for those advocating for fair competition!

“According to John Shaeffer, a partner at Fox Rothschild, since the new millennium began, people have been hesitant to file such lawsuits due to the state of antitrust law back then, as there was no price involved in this case.”

Google said it would appeal the ruling.

Nevertheless, Mehta’s move might serve as a trailblazer for other companies to file lawsuits against Google, potentially following in Yelp’s footsteps should they emerge victorious, according to certain legal analysts.

“Carl Tobias, a law professor at the University of Richmond, stated that it provides an opportunity for those in similar situations or who argue they’ve suffered harm due to Google’s monopolistic actions.”

As a film critic, I find it intriguing to note that Google has countered Yelp’s allegations by highlighting an interesting fact – Yelp raised similar concerns years ago. Essentially, Google is emphasizing that their search results are not just about pointing fingers, but they actively assist businesses, generating over 3 billion clicks to websites every month, a significant digital footfall one might say.

In 2013, though the Federal Trade Commission (FTC) concluded that Google did not breach antitrust laws after a prolonged 19-month inquiry, documents released since then suggest that certain FTC staff members recommended taking legal action against Google for some of its business practices. As reported by the Wall Street Journal.

1. The Federal Trade Commission (FTC) has examined Yelp, but ultimately decided not to take any action against the business. Previously, Google had even attempted to purchase Yelp.

This year, the United States Department of Justice has brought antitrust cases against both Apple and Google, while similar legal action was taken against Amazon last year. These actions are in response to growing worries about these companies’ dominance within their respective industries and potential restrictions on consumer options.

Lawmakers in state government attempted but failed to pass a bill mandating firms such as Google, who offer advertising alongside news articles, to compensate news publishers. Subsequently, a compromise was reached leading Google to agree on a payment of approximately $173 million over a five-year period. This money will be allocated towards journalism organizations and an artificial intelligence development program.

David Segal, Yelp’s Vice President of Public Policy, stated that there has been a significant shift in the political atmosphere and the recognition of antitrust as crucial for all individuals.

Yelp’s lawsuit could ultimately end up at the Supreme Court.

According to Bryan Sullivan, a partner at Early Sullivan Wright Gizer & McRae, it seems unlikely that they filed this for the purpose of receiving compensation. Instead, he believes they filed it with the intention of making a statement and attempting to alter the current situation.

Read More

2024-08-30 22:32

Previous post 8 shows to watch like Real Housewives