Chegg Sues Google Over AI Search Summaries Alleged to Harm Revenue

The educational tech company accuses Google of monopolistic practices and claims its AI Overviews divert traffic and undermine content creators.

Chegg filed a federal antitrust lawsuit against Google, alleging that its AI Overviews unfairly use Chegg's content and harm its web traffic and revenue.
The lawsuit claims Google's AI Overviews transform the search engine into an 'answer engine,' reducing incentives for publishers to produce original content.
Chegg reported a 49% drop in non-subscriber traffic in January 2025 compared to the previous year, attributing the decline to Google's AI features.
Chegg's CEO stated that the company's financial struggles, including a 24% year-over-year revenue decrease, have forced it to explore options like going private or being acquired.
Google defends its AI Overviews, asserting they increase content discovery and send billions of clicks to websites, while labeling Chegg's claims as meritless.