The lawsuit also addresses the potential impact of AI on publishers' businesses, a concern highlighted in a recent Wall Street Journal report. The report revealed that incorporating AI into Google search resulted in the AI answering the user's query without necessitating a click-through to the website in 75% of cases, leading to a loss of traffic. This is significant for publishers, as Google currently accounts for nearly 40% of their traffic. The lawsuit asserts that Google's recent strides in AI-based search were implemented with the specific intention of discouraging end-users from visiting the websites of Class members who are part of the digital news and publishing sector.
Key takeaways:
- A new class action lawsuit has been filed against Google and Alphabet, accusing them of engaging in anticompetitive behavior by using AI technologies to 'siphon off' news publishers' content, readers, and ad revenue.
- The lawsuit alleges that Google's AI technologies, such as the Search Generative Experience (SGE) and Bard AI chatbot, along with older technologies like the 'Knowledge Graph', are adversely affecting the free press and causing significant financial losses for news publishers.
- According to a simulation, incorporating AI into Google search resulted in the AI answering the user's query without necessitating a click-through to the website in 75% of cases, leading to a loss of traffic for publishers.
- The lawsuit also raises concerns about fluctuations in AdSense rates and indications of improper spoliation of evidence on Google's part, such as the destruction of chat messages.