Penske Media, owner of Rolling Stone, Billboard, and Variety, has filed a lawsuit against Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google over the use of AI-generated summaries.
AI Overviews Reduces Website Traffic, Affects Revenue, Says Penske Media
The lawsuit, filed in a federal court in Washington, D.C., marks the first instance of a major U.S. publisher taking legal action against Google over AI summaries, according to a report by Reuters. Penske alleges that Google’s AI Overviews use its journalism without permission, reducing website traffic and affecting revenue.
Penske Media, led by Jay Penske, claims Google only includes publishers’ sites in search results if it can use their content in AI summaries. Without this leverage, Google would need to compensate publishers for republishing their work or using it to train AI systems.
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Google's Search Dominance
The lawsuit highlights Google’s dominance in the search market, with a near 90% share, as a factor allowing it to impose such terms. Penske noted that about 20% of Google searches linking to its sites now show AI Overviews, a figure expected to rise, leading to a significant drop in affiliate revenue.
Google spokesperson Jose Castaneda defended the AI Overviews, stating they enhance user experience and increase content discovery opportunities. Meanwhile, the News/Media Alliance, representing over 2,200 U.S. publishers, expressed concerns over Google’s market power and its impact on AI licensing deals.
Not An Isolated Incident
The lawsuit by Penske Media is not an isolated incident. Earlier this year, Chegg Inc. (NYSE:CHGG) also sued Google, alleging that its AI-generated search overviews unfairly used publishers’ content, reducing site traffic and threatening the future of online publishing. This legal action underscores a growing concern among publishers about the impact of AI on their business models.
In August, Japanese media giants Nikkei and Asahi Shimbun filed a lawsuit against Perplexity AI, accusing the AI platform of illegally storing and misusing their articles.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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