Google faces lawsuit over AI search impact on publishers

Chegg claims Google’s AI search features are eroding demand for original content and harming digital publishers.
An online education company has filed a lawsuit against Google, claiming its AI-generated search overviews are damaging digital publishing. Chegg alleges the technology reduces demand for original content by keeping users on Google's platform, ultimately eroding financial incentives for publishers. The company warns this could lead to a weaker online information ecosystem. Chegg, which provides textbook rentals and homework help, says Google's AI features have contributed to a drop in traffic and subscribers. As a result, the company is considering a sale or a move to go private. Chegg’s CEO Nathan Schultz argues Google is profiting from the company's content without proper compensation, threatening the future of quality educational resources. A Google spokesperson rejected the claims, insisting AI overviews enhance search and create more opportunities for content discovery. The company maintains that search traffic remains strong, with billions of clicks sent to websites daily. However, Chegg argues that Google's dominance in online search allows it to pressure publishers into providing data for AI summaries, leading to fewer visitors to original sites. The education company argues AI-generated overviews keep users on Google’s platform, reducing financial incentives for content creators.

An online education company has filed a lawsuit against Google, claiming its AI-generated search overviews are damaging digital publishing.

Chegg alleges the technology reduces demand for original content by keeping users on Google’s platform, ultimately eroding financial incentives for publishers. The company warns this could lead to a weaker online information ecosystem.

Chegg, which provides textbook rentals and homework help, says Google’s AI features have contributed to a drop in traffic and subscribers.

As a result, the company is considering a sale or a move to go private. Chegg’s CEO Nathan Schultz argues Google is profiting from the company’s content without proper compensation, threatening the future of quality educational resources.

A Google spokesperson rejected the claims, insisting AI overviews enhance search and create more opportunities for content discovery. The company maintains that search traffic remains strong, with billions of clicks sent to websites daily.

However, Chegg argues that Google’s dominance in online search allows it to pressure publishers into providing data for AI summaries, leading to fewer visitors to original sites.

The lawsuit marks the first time an individual company has accused Google of antitrust violations over AI-generated search features. A similar case was previously filed on behalf of the news industry. A US judge overseeing another case involving Google’s search monopoly is handling this lawsuit as well.

Google intends to challenge the claims and is appealing a previous ruling that found it held an illegal monopoly in online search.

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