Yelp has filed an antitrust lawsuit against Google, accusing it of exploiting its dominant market position to stifle competition and boost its profits in local search markets. The lawsuit, filed on Wednesday in federal court in the Northern District of California, marks the latest in a series of legal challenges... Read More »
Florida Restaurant Group Sues Google for ‘Hijacking’ Customer Orders from Restaurants
A Florida restaurant group is suing Google over allegations that the tech giant used “bait-and-switch tactics” to capture customer orders that would have otherwise gone through the restaurant directly.
The lawsuit takes issue with Google’s “order online” button. When users click this button, instead of being directed to the restaurant landing page or another page authorized by the restaurant, users are redirected to a page on Google’s interface. Because users stay on the Google interface, they receive ordering options that allow the customer to place their order using several third-party options including GrubHub and DoorDash. The Google interface allows users to place their order through the website as well; however, the link to the restaurant is a generic “website” button.
The complaint explains, "Google purposefully designed its websites to appear to the user to be offered, sponsored, and approved by the restaurant, when they are not -- a tactic, no doubt, employed by Google to increase orders and clicks.”
The lawsuit claims that Google’s “order online” button is deceptive because it appears as though the restaurant has authorized or sponsored it. Instead, by selling the restaurant's products without permission, these third-party services are taking away a commission from the participating restaurants, commissions which are as high as 15 to 30% in most cases.
When users click on the button, they stay on the Google interface but are routed to third-party providers according to the lawsuit. Because of this, third-party delivery options may come with additional fees that the restaurant wouldn’t ordinarily charge. “A restaurant’s motivation to partner with a Delivery Provider is almost never to make a profit on orders received from the Delivery provider,” the complaint reads. “Rather, a restaurant’s usual goal is to capture new customers that may later place orders with the restaurant outside of the Delivery Providers’ expensive platforms.”
The restaurant group contends that Google’s “Order Online” button is essentially an “unauthorized online storefront -- one owned and controlled by Google -- wherein consumers can place orders for the restaurant’s products, all under the restaurant’s trade name.” The group suggests that the button feature a more appropriate label such as “Google’s Unauthorized Buying Service.”
Google spokesperson Ashley Thompson shared that the tech company stands behind its business practices. Thompson called the restaurant’s complaint about the “Order Online" button a “mischaracterization” and that the group plans to “vigorously” defend itself from the restaurant group’s claims.
Thompson shared with the online magazine The Verge, “We provide tools for merchants to indicate whether they support online orders or prefer a specific provider, including their own ordering website. We do not receive any compensation for orders or integrations with this feature.”
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