Chegg's CEO, Nathan Schultz, argues that Google profits from the company's content without compensation, impacting the broader digital publishing industry and the quality of educational resources available to students. The lawsuit highlights that while publishers allow Google to crawl their websites for search results, Google has begun using this information for AI overviews, resulting in fewer site visitors. Chegg contends that this conduct violates laws against conditioning the sale of one product on the customer providing another, as Google allegedly coerces publishers into allowing the use of their content for AI features.
Key takeaways:
- Chegg has filed a lawsuit against Google, accusing it of using AI-generated overviews to undermine publishers by reducing site traffic and eroding financial incentives for original content.
- Chegg claims Google's practices violate antitrust laws and threaten the integrity of the online information ecosystem.
- Chegg has experienced a significant drop in visitors and subscribers, and its stock price has fallen by more than 98% from its peak in 2021.
- Chegg argues that Google's conduct violates laws against conditioning the sale of one product on the customer selling or giving its supplier another product.