Y Combinator Labels Google a “Monopolist” That “Stunted” Startup Growth

Startup accelerator and venture-capital firm Y Combinator (YC) in a brief filed on the US monopoly case against Google (United States v. Google LLC) accused Google of being a “monopolist” that has “stunted” the US startup ecosystem, TechCrunch reported.

YC argued that Google’s dominance in search and digital advertising creates a “kill zone” deterring venture-capital firms, including itself, from funding web-search and AI startups that could challenge Google’s market position.

According to YC, this has “chilled” investment in innovative startups, resulting in a “stunted and stagnant” competitive landscape. Specifically, YC highlighted Google’s practices such as paying billions to secure default-search-engine status on devices like the iPhone as anti-competitive. The brief, reported by TechCrunch, suggests remedies like curbing these practices and opening Google’s search index to help competitors train large-language models, rather than seeking an immediate breakup of Google.

YC stated in its filing that “Google has chilled independent firms like YC from funding and accelerating innovative startups that could otherwise have challenged Google’s dominance.” The filing further noted that “the result is a landscape that has been artificially stunted and stagnant.”

It also stated that the organisation is now focused on supporting entrepreneurs developing question-based and agentic AI solutions that have the potential to transform how people interact with information online. However, YC believes there is a “clear risk” that Google will leverage its dominant position to suppress the future growth of such businesses.

“Google has effectively frozen the web-search and text-advertising markets for over a decade,” YC wrote.

The brief, filed on 9 May 2025, was discovered on X by venture capitalist Sheel Mohnot, a general partner at Better Tomorrow Ventures and an active social-media user. However, YC is not advocating Google’s rapid dissolution, as CEO Garry Tan clarified in response to Mohnot.

Google Monopoly Case

The “Google vs DOJ” case, formally United States et al. v. Google LLC (2023), is a landmark antitrust lawsuit initiated by the US Department of Justice in 2020 accusing Google of illegally monopolising the search-engine and digital-advertising markets.

The DOJ alleges that Google engaged in anti-competitive practices to maintain its dominance in internet search, suppressing competitors like Bing and DuckDuckGo. According to Business Standard, Google secured contracts with major tech companies to establish its search engine as the default on devices and browsers, hindering competitors’ ability to gain market share. The DOJ and state attorneys general argue that Google’s search dominance drives its digital-advertising revenue, creating a self-reinforcing “feedback loop” that further entrenches its market power.

The case remains ongoing, with the DOJ seeking remedies to dismantle Google’s control and foster competition in the search and adtech markets. The Verge reports that proposed remedies include prohibiting Google from paying for default-search-engine status in third-party browsers and potentially requiring Google to divest its Chrome browser or Android operating system.