US-based educational technology firm Chegg has filed a lawsuit against Google, accusing the tech giant of eroding demand for original content and undermining publishers’ ability to compete with its AI-generated search overviews. The lawsuit, filed in Washington, DC, alleges that Google’s AI-driven search results reduce incentives for publishers to produce quality content by keeping users on Google’s platform instead of directing them to external websites.
Impact of Google’s AI on Digital Publishers
Chegg, which offers textbook rentals, homework assistance, and tutoring services, has experienced a decline in site traffic and subscribers, which it attributes to Google’s AI-generated overviews. The company warned that this shift could lead to an “information ecosystem of little use and unworthy of trust.”
As a result of declining user engagement, Chegg is now considering a sale or privatization, CEO Nathan Schultz said on Monday. The company has already laid off 21% of its workforce in November 2023, reflecting broader financial struggles.
Google Denies Claims, Defends AI Overviews
Google dismissed the lawsuit, with spokesperson Jose Castaneda stating that AI-generated overviews make Search more useful while still driving significant traffic to external sites. He argued that Google continues to send billions of clicks to publishers daily, and that AI overviews help users discover a broader diversity of sources.
Antitrust Allegations and Legal Battle Against Google
Chegg’s lawsuit marks one of the first antitrust claims against Google over AI-generated content, arguing that the company coerces publishers into allowing their data to be used for AI-generated results. Chegg alleges that Google’s practices violate US antitrust laws by conditioning search visibility on whether publishers allow their content to be used for AI summaries.
The case comes amid broader regulatory scrutiny of Google’s dominance in online search. In 2023, an Arkansas newspaper filed a similar lawsuit against Google on behalf of the news industry, alleging that the company’s AI search features harmed publishers’ ability to generate ad revenue.
Also read: Bollywood Music Labels Sue OpenAI Over Copyright in India
The lawsuit is being overseen by US District Judge Amit Mehta, who previously ruled that Google holds an illegal monopoly in online search in a case brought by the US Department of Justice. Google has vowed to appeal that ruling and has also moved to dismiss the Arkansas newspaper’s case.
Shaping the Future of AI and Online Content
Chegg’s lawsuit raises fundamental questions about the balance between AI-driven innovation and fair competition. As AI search summaries become more prevalent, publishers and content creators face growing challenges in maintaining visibility and revenue streams. The outcome of this legal battle could reshape AI’s role in digital publishing and search monetization, setting a precedent for how tech giants leverage AI in the future.
(This news was first reported by Reuters.)
