Google Faces Lawsuit From Penske, Owner of Rolling Stone and Billboard, Alleging Unfair Use of AI Summaries
In a significant move, Penske Media, the US-based media company behind popular publications such as Rolling Stone, Billboard, and Variety, has taken Google to court in Washington, D.C. The lawsuit, filed on Friday, alleges that Google has been using Penske's journalism products without consent, a practice that the company claims reduces traffic to its websites.
The lawsuit comes at a time when Google has been slower than other AI firms like OpenAI in signing AI licensing deals. According to Penske, Google only includes publishers' websites in its search results if it can use their articles in AI summaries, a practice known as AI Overviews.
Penske Media anticipates that about 20% of Google searches linking to its sites now show AI Overviews, a share they expect to rise. The company argues that without the leverage to negotiate fair terms, Google would have to pay publishers for the right to republish their work or use it to train its AI systems.
The News/Media Alliance, which represents over 2,200 U.S.-based publishers, has expressed concern about Google's market power and lack of adherence to norms. Danielle Coffey, CEO of the News/Media Alliance, believes that Google's massive scale and market power allow it to not abide by the same norms as other AI companies.
The lawsuit also claims that affiliate revenue has fallen by more than a third from its peak by the end of 2024 due to a decline in search traffic. This decline, according to Penske, is a direct result of Google's practice of using AI Overviews.
Interestingly, publishers are unable to opt out of AI overviews due to Google's market power. Google has responded to the lawsuit by stating that AI overviews offer a better user experience and send traffic to a wider variety of websites. The company's spokesperson also noted that AI Overviews have been ruled to be beneficial for search users.
This is the first time a major U.S. publisher has taken Google to court over AI-generated summaries appearing on top of search results. In February, online education company Chegg also sued Google, alleging that AI-generated overviews were eroding demand for original content and undermining publishers' ability to compete.
In a recent development, a judge ruled that Google does not have to sell its Chrome browser as part of efforts to open up competition in search. However, this decision has been met with disappointment by some publishers and industry bodies, including the News/Media Alliance.
Google's dominance in the U.S. search market, with a near 90% share, is cited as a reason for its ability to impose such terms. The lawsuit seeks to address this imbalance and ensure fair compensation for publishers whose content is used by Google.
As the case progresses, it will be interesting to see how Google responds and whether other publishers follow suit in challenging Google's practices. Stay tuned for updates on this developing story.
