Chegg sues Google over AI Overviews

Online education company Chegg filed a lawsuit on February 24th against Google claiming that the company’s AI-generated summaries of search results have hurt its traffic and revenue, Reuters reports. It’s believed to be the first antitrust lawsuit filed by a single company over the AI Overviews feature, Reuters says.

Chegg claims Google uses its power as a monopoly to coerce companies into using their content for AI Overviews, “reaping the financial benefits of Chegg’s content without having to spend a dime,” CEO Nathan Schultz says in prepared remarks for investors. Chegg, which offers textbook rentals and homework help, is now considering getting acquired and going private as a result.

“Our lawsuit is about more than Chegg – it’s about the digital publishing industry, the future of internet search, and about students losing access to quality, step-by-step learning in favor of low-quality, unverified AI summaries,” Schultz says.

“Every day, Google sends billions of clicks to sites across the web, and AI Overviews send traffic to a greater diversity of sites,” says Google spokesperson Jose Castaneda in a statement to Reuters.

The lawsuit comes as a number of media outlets have expressed concern over how Google’s AI summaries have impacted traffic. Last year, the News/Media Alliance — an organization that represents over 2,000 news publishers — published a press release saying its impact will be “catastrophic.”