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The internet search engine is eroding demand for original content and undermining publishers' ability to compete with its artificial intelligence-generated overviews, a US educational technology company said in a lawsuit filed on Monday. The Reuters report said Chegg, an online education company that offers textbook rentals, homework help, and tutoring, said in the lawsuit filed in Washington, D.C., that Google is co-opting publishers' content to keep users on its own site, erasing financial incentives to publish. It argues that Google's actions will ultimately lead to a “hollowed-out information ecosystem of little use and unworthy of trust.”
“Our lawsuit is about more than Chegg – it's about the digital publishing industry, the future of internet search, and about students losing access to quality, step-by-step learning in favor of low-quality, unverified AI summaries,” Schultz stated. He further accused Google of profiting from Chegg's content without compensation.
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What has Chegg said in its lawsuit?
The Santa Clara, California-based company has said Google's AI overviews have caused a drop in visitors and subscribers. The company is now considering a sale or take-private transaction as a result, the company's CEO Nathan Schultz said on Monday.
