Reuters is reporting, that Chegg has filed a lawsuit against Google – accusing the tech giant of undermining publishers with its AI-generated Serps. Chegg is an online education company and claims Google is using its content without compensation, reducing traffic to its website. As a result, Chegg has seen a major decline in subscribers and is now forced to consider alternatives, including an exit or going private. The company argues that Google’s Zero Click Serps and AI overviews strip away incentives for websites, creating an “information ecosystem of little use and unworthy of trust because of hallucinations.”
Google apparently has dismissed the lawsuit as meritless, arguing that AI overviews enhance the search experience and drive traffic to a more diverse range of sites. Google’s spokesperson, Jose Castaneda, stated that search remains a critical tool for content discovery and that the company sends billions of clicks to publishers daily. However, Chegg and other publishers claim that Google’s AI-generated summaries dissuade users from clicking through to original sources, diminishing the value of high-quality, expert-driven content.
One need not look too far or deep to find hundreds of thousands of comments decrying Googles AI overviews. Nobody wanted it – they are annoying and confusing. Users are flatout raging against Google AI over views on all fronts. Anywhere there is an open discussion about Googles AI Serps, negativity ensues. It was also in December, that Google was caught red-handed changing site links to publishers.
The lawsuit marks the first significant legal challenge to Google’s AI-powered Serps. Chegg argues that Google’s actions violate antitrust laws by coercing publishers into allowing AI overviews while reducing their visibility in traditional search results (having their cake and eating it too).
Meanwhile, OpenAI – with it’s own AI Powered search engine – is fielding no less than 4 major lawsuits (including one by the uber New York Times) With Google already facing antitrust scrutiny, the outcome of these cases could shape the future of digital publishing and AI-driven content aggregation.
Also more bad news for Google this last week with notice that EU regulators are set to charge Google with breaching the Digital Markets Act over its failure to assuage concerns over allegedly preferencing its own services in search results, Reuters reported.
As the CEO and founder of Pubcon Inc., Brett Tabke has been instrumental in shaping the landscape of online marketing and search engine optimization. His journey in the computer industry has spanned over three decades and has made him a pioneering force behind digital evolution. Full Bio
Visit Pubcon.com