A lawsuit filed by Penske Media against Google is set to be heard by a Washington federal court. The publisher claims that Google`s “AI overviews” feature unlawfully utilizes its journalistic content, resulting in a decline in the media holding`s revenue.
Penske Media, the owner of renowned publications such as Rolling Stone, Billboard, and Variety, has initiated legal proceedings against Google. Jay Penske`s company alleges that the tech giant`s artificial intelligence improperly uses content from its magazines without obtaining the necessary consent.
The core complaint targets Google`s “AI overviews” search feature, which generates and displays concise information summaries using artificial intelligence. These summaries appear at the top of search results, enabling users to get the information they need without visiting the original website, which significantly reduces traffic to Penske Media`s portals.
A similar technology, for instance, used by Yandex in Russia, also raises concerns. The American media publisher insists that Google`s actions are illegal. According to CNN, the Washington federal court is now tasked with resolving this matter:
This lawsuit marks the first instance of a major American publisher suing Google over AI-generated summaries. For several months, news organizations have voiced concerns about declining website traffic, leading to a drop in advertising and subscription revenues, as the integration of neural networks into search engines alters information consumption patterns. Jay Penske`s media content is viewed by approximately 120 million users monthly. Penske Media asserts that Google only includes sites in AI summaries with the owners` permission, creating a scenario where, without this pressure, Google could freely use publisher content for AI training and summary generation. Penske Media indicates that about 20% of Google search queries that would otherwise direct users to their sites now feature AI-generated summaries, and this figure is projected to rise. Consequently, revenue from affiliate programs has already decreased by over a third compared to last year`s peak figures.
In response to Penske Media`s lawsuit, Google representatives stated that the “AI Overviews” feature makes search more efficient and appealing to users, encouraging more frequent use. They also contend that users who click through links provided by AI summaries spend more time on the source websites. Furthermore, Google emphasizes that the neural network consistently provides links to original sources, allowing those who wish to delve deeper into the material to do so.
It is worth noting that last year, a U.S. Federal Court declared Google a monopolist in the American search engine market, establishing its share at nearly 90%. The Department of Justice had even demanded that the company sell its Chrome browser to foster competition in the search sector.
However, in early September, Google prevailed against the government in court, avoiding the forced sale of its browser. Nonetheless, as per the court`s ruling, Google is obligated to share its search data with competitors for the next six years.
Rupert Blackwood 
Clement Ashworth