Y Combinator (YC), a prominent startup accelerator, has recently submitted an amicus brief in the United States’ antitrust case against Google, alleging that the tech giant’s monopolistic behavior has significantly impeded the growth and innovation of startups, particularly in the web search and artificial intelligence (AI) sectors.
In the brief, YC asserts that Google’s dominance has created a kill zone around its core businesses, deterring venture capital firms from investing in potential competitors. This environment has led to a stagnation in the startup ecosystem, as emerging companies are reluctant to challenge Google’s supremacy due to the perceived risks. YC emphasizes that Google’s practices have chilled independent firms like YC from funding and accelerating innovative startups that could otherwise have challenged Google’s dominance, resulting in a landscape that is artificially stunted and stagnant.
The accelerator highlights its interest in supporting startups developing question-based and agentic AI tools, which have the potential to revolutionize how users interact with online information. However, YC expresses concern that Google’s entrenched position may hinder the advancement of these technologies. The brief states, Google has effectively frozen the web search and text advertising markets for over a decade, underscoring the company’s long-standing control over these sectors.
While YC stops short of calling for an immediate breakup of Google, it advocates for the company to cease practices deemed anti-competitive, such as paying substantial sums to Apple to maintain its status as the default search engine on iPhones. Additionally, YC proposes that Google should open its search index to allow other entities to train large language models (LLMs), thereby fostering a more competitive and innovative environment.
This move by YC marks a significant shift, as startups have traditionally been hesitant to confront major tech firms due to potential repercussions and the complexities involved in challenging such powerful entities. Historically, some notable antitrust victories have followed startup advocacy, but the current landscape presents unique challenges. The tech giants’ unprecedented power creates a significant imbalance, making it difficult for smaller players to advocate for change without facing substantial risks.
The broader context includes recent legal actions against Google. In August 2024, Judge Amit Mehta declared Google a monopoly, concluding a near four-year antitrust case brought by the U.S. Department of Justice. The court identified several ways in which Google’s market dominance distorts competition, including securing super-profits from advertisers, compromising user privacy, and neutralizing potential competitors through hefty payments for default distribution deals. Potential remedies discussed range from imposing substantial fines to breaking up Alphabet, Google’s parent company.
Furthermore, in April 2025, Judge Leonie Brinkema ruled that Google had formed an illegal monopoly in its advertising business. The decision was Google’s second antitrust ruling, following the August 2024 verdict on its search market dominance. These rulings have significant implications for the digital advertising landscape and the broader tech ecosystem, potentially leading to increased competition and innovation.
YC’s involvement in this case underscores the growing concern among startups and investors about the impact of monopolistic practices on innovation and competition. By taking a stand against Google’s dominance, YC aims to advocate for a more open and competitive digital future, where emerging companies have the opportunity to thrive without undue interference from established tech giants.
