Overview

• 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.