Penske Media Sues Google Over AI Overviews Revenue Loss
▼ Summary
– Penske Media is suing Google for allegedly using its journalism without permission to generate AI summaries in search results.
– The lawsuit claims Google forces publishers to accept content usage in AI Overviews or risk lower search visibility due to its market dominance.
– AI Overviews appear on approximately 20% of searches linking to Penske’s sites and have caused a significant drop in affiliate revenue.
– This marks the second lawsuit against Google’s AI Overviews, following a similar case filed by educational technology company Chegg in February.
– Google defends AI Overviews as beneficial for users and website traffic, dismissing the claims as meritless.
A major legal battle has erupted between Penske Media Corporation and Google, centering on the tech giant’s use of AI-generated summaries in search results. The publisher, which owns influential outlets like Rolling Stone, Billboard, and Variety, alleges that Google is unlawfully using its content to power AI Overviews without compensation, leading to significant financial harm.
This lawsuit marks the first major challenge from a U.S. publisher against Google’s AI Overviews feature, which has been widely criticized for reducing referral traffic to original content sources. According to the complaint, filed in federal court in Washington D.C., Google leverages its overwhelming search market dominance to pressure publishers into accepting the use of their material in AI summaries, or face diminished visibility in search rankings.
The legal filing contends that Google’s practices stand in stark contrast to those of competitors like OpenAI, which has entered into licensing agreements with publishers to lawfully access and utilize content. Penske Media reports that AI Overviews now appear in roughly 20% of searches that would otherwise link to its sites, contributing to an alarming one-third decline in affiliate revenue by late 2024.
In a statement, Penske emphasized its commitment to defending the sustainability of digital media, stating, “We have a responsibility to proactively fight for the future of digital media and preserve its integrity – all of which is threatened by Google’s current actions.”
Google, for its part, has pushed back against the allegations. A company spokesperson told Reuters, “AI Overviews make Search more helpful and send traffic to more sites. We will defend against these meritless claims.”
This is not the first time Google has faced legal action over the impact of its AI features on web publishers. Earlier this year, educational technology firm Chegg filed a similar lawsuit, citing comparable concerns over traffic and revenue declines attributed to AI Overviews.
The case underscores growing tension between content creators and AI developers over fair compensation and the ethical use of published material. As generative AI becomes more integrated into everyday tools, the outcome of this lawsuit could set an important precedent for how intellectual property is treated in the age of artificial intelligence.
(Source: Search Engine Land)
