Parent Company of Rolling Stone and The Hollywood Reporter
Files Antitrust Lawsuit Over Google's 'AI Overview' Feature
"Declining Traffic" vs. "High-Quality Traffic"
An American media group has filed a lawsuit against Google, claiming that its 'AI Overview' service, which summarizes and displays results at the top of Google searches, has led to a decline in web traffic. According to Yonhap News on September 13 (local time), citing the Wall Street Journal (WSJ), "Penske Media, which owns Rolling Stone and The Hollywood Reporter, filed an antitrust lawsuit against Google in the U.S. District Court for the District of Columbia the previous day."
Since last year, Google has been offering its 'AI Overview' service. This service summarizes and presents only the key information, allowing users to avoid visiting multiple websites after a Google search. As a result, websites providing the original information have experienced a decrease in user traffic.
According to Yonhap News, Penske Media stated, "Google's AI Overview has unlawfully appropriated our original content, which we have invested significant effort in reporting and producing, resulting in tangible damages such as decreased traffic and revenue." The company also argued, "As the proportion of search results containing AI Overview has increased, traffic to our websites has declined, and consequently, revenue from online shopping affiliate links has dropped by more than one-third."
Penske Media further pointed out, "Google's AI features are built on information provided without compensation," and explained, "If news outlets block content provision, their search visibility disappears, putting their business at risk. If they do not block it, their content becomes material for AI Overview, creating a 'dilemma,'" highlighting the antitrust issue.
In contrast, Google responded, "AI Overview enhances search efficiency and drives traffic to a wider variety of sites," adding, "Traffic generated through AI Overview is not just about the number of clicks, but represents high-quality traffic, with users spending more time on sites and engaging more deeply with the content."
The Wall Street Journal explained, "While U.S. edtech company Chegg and a local newspaper in Arkansas have previously filed lawsuits, this is the first time a mainstream U.S. media outlet like Penske Media has initiated legal action against Google over the AI Overview feature."
Recently, lawsuits between news organizations and AI companies over AI training and search have been spreading in the United States. The New York Times filed a copyright lawsuit against OpenAI and Microsoft in December 2023, and the Wall Street Journal and New York Post sued Perplexity in October last year.
Conversely, cases of partnerships between news outlets and big tech companies for content use in AI training are also increasing. News Corporation, the parent company of the Wall Street Journal, signed a content provision agreement with OpenAI. The New York Times has entered into a contract with Amazon, and the Associated Press has partnered with Google.
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