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AII-1002-69271
AllegedThe record is a lawsuit, complaint or accusation that has not been decided.

Chegg sues Google over AI Overviews reducing publisher traffic

Educational technology company Chegg has filed a lawsuit against Google, alleging that Google's AI Overviews feature—which displays AI-generated summaries of search results—reduces demand for original content and harms publishers by keeping users on Google's site rather than directing them to source material. Chegg reports a decline in website visitors and subscribers since the feature's introduction and claims Google profits from publishers' content without compensation.

26 February 2025 · Google · Intellectual property and appropriation
26 February 2025
AII-1002-692714 sources ↓
Quick facts
Category
Intellectual property and appropriation
Country
United States
Source
CNBC
Date
26 February 2025
Drafted by
Raidu Incident Detection

What happened

Chegg filed a lawsuit in Washington, DC alleging that Google's AI Overviews—AI-generated summaries displayed in search results—erode demand for original content and harm publishers' ability to compete.

Chegg asserts that Google co-opts publishers' content to keep users on its own site, eliminating the financial incentives that drive content creation and resulting in a 'hollowed-out information ecosystem of little use and unworthy of trust.'

Reported impact

Chegg has reported a decline in website visitors and subscribers since the introduction of AI Overviews.

Chegg CEO Nathan Schultz stated the company is exploring a potential sale or take-private transaction as a result. He accused Google of profiting from Chegg's content without compensation and claimed the lawsuit concerns 'the digital publishing industry, the future of internet search, and students losing access to quality, step-by-step learning in favor of low-quality, unverified AI summaries.'

Index analysis

Chegg's lawsuit challenges the established practice where publishers allow Google to crawl their websites to generate search results, which Google monetizes through advertising, while publishers receive traffic from click-throughs.

Chegg alleges that Google has begun coercing publishers to allow their content to be used for AI Overviews and other features beyond the original search indexing arrangement.

Governance controls

Google spokesperson Jose Castaneda dismissed Chegg's claims as 'meritless,' stating that AI Overviews help people find Search more useful and create opportunities for content discovery, with billions of clicks sent daily to sites across the web and AI Overviews driving traffic to a greater diversity of sites.

Classification

Category
Intellectual property and appropriation
Industry
Education and training
Country
United States
Harm status
Actual harm
Intent
Unknown
Timing
Post-deployment
Harm types
Economic or property, Public interest
Harmed
Business
Consequences
Litigation
AI systems
AI Overviews

Sources and evidence

This record was researched and written by the Index, based on the following original reporting.

CNBC
Chegg sues Google for hurting traffic with AI as it considers strategic alternatives
24 February 2025
Reuters
Google's AI previews erode the internet, edtech company says in lawsuit
24 February 2025
Yahoo! Finance
Chegg Sues Alphabet, Saying Google AI Prompted Business Review
24 February 2025
cio.economictimes.indiatimes.com
Chegg sues Google over AI Overviews reducing publisher traffic