Link: Chegg sues Google over AI Overviews

Chegg has launched an antitrust lawsuit against Google, alleging that Google's AI-generated search summaries have negatively impacted its web traffic and revenue. This marks the first lawsuit of its kind against Google's AI Overviews feature, according to Reuters.

Chegg accuses Google of abusing its market dominance to leverage content from companies for its AI Overviews without compensation. Chegg's CEO Nathan Schultz highlighted this exploitation during an investors' meeting.

The suit underscores broader issues affecting the digital publishing sphere and internet search quality. Schultz emphasizes that it concerns the entire educational content industry and the reliability of search results for students.

Google, however, defends its AI Overviews, stating they help diversify web traffic across various sites. Google's spokesperson Jose Castaneda pointed out that these Overviews generate billions of site visits daily.

This legal challenge emerges amid growing unrest from media companies about Google's AI summaries. The News/Media Alliance warned that the repercussions for traffic to news sites could be severe.

In response to these challenges, Chegg is contemplating significant strategic changes, including potentially going private or finding a buyer.

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