Google’s AI-powered search results are gutting the digital publishing ecosystem, claims U.S.-based education company Chegg in a lawsuit that takes direct aim at the tech giant’s dominance. Filed in Washington, D.C., the suit alleges that Google is siphoning traffic away from publishers by using their content to generate AI-driven overviews, leaving content creators with dwindling financial incentives to sustain their businesses.
Chegg, known for its textbook rentals and tutoring services, argues that Google’s AI overviews have dramatically reduced its web traffic, forcing the company to explore drastic measures—including a potential sale or privatization. CEO Nathan Schultz warns that Google’s practices don’t just threaten Chegg but could unravel the entire online information landscape.
“This isn’t just about us—it’s about the future of digital publishing, the integrity of online search, and ensuring students get reliable, high-quality learning resources instead of unverified AI-generated summaries,” Schultz said.
Google, however, remains dismissive of the claims. Company spokesperson Jose Castaneda insists that AI Overviews are enhancing search experiences and driving traffic to a broader range of sites. “Google continues to send billions of clicks to websites every day,” he stated.
Despite Google’s assurances, Chegg’s stock has nosedived—plummeting over 98% from its peak in 2021. The company recently announced a 21% workforce reduction, a move Schultz attributes in part to Google’s AI-driven disruption.
The lawsuit marks the first standalone antitrust challenge against Google’s AI-generated search results. It follows a broader legal battle waged by news publishers, who claim Google’s practices are depriving them of essential ad revenue. That case is being overseen by U.S. District Judge Amit Mehta, who has already ruled that Google holds an illegal monopoly in online search. Google plans to appeal the decision.
As legal battles mount, the outcome of this fight could reshape the balance of power between tech giants and content creators—determining whether the internet remains a thriving marketplace of ideas or a barren landscape controlled by AI-driven algorithms.
