Education firm, Chegg sues Google, says search giant AI reviews killing its business

Online education company Chegg has dragged Google to court after claiming that the search giant’s artificial intelligence reviews have hurt its traffic and revenue.

Citing antitrust law violations, the company has launched a federal complaint against Google, alleging that it has abused its dominant position in the search market to compel businesses to supply content for its AI-generated summaries.

Using the Sherman Act as a novel legal tactic, Chegg has joined an increasing number of businesses suing Google for content infringement and misuse.

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In its quarterly report, which was made public on Tuesday, the company blamed AI-generated search summaries for its recent financial difficulties and asserted that Google had “unjustly retained traffic” that had previously been directed to Chegg’s website.

According to Nathan Schultz, CEO of Chegg, the education company has been compelled to investigate “strategic alternatives,” including going private or being bought, as a result of the traffic reduction that Chegg attributes to Google’s AI overviews.

“Google is reaping the financial benefits of Chegg’s content without having to spend a dime,” Schultz said. “Our complaint challenges Google’s unfair competition, which is unjust, harmful, and unsustainable.”

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