Disclosure: Penske Media Corporation is an investor in Vox Media, The Verge’s parent company.
Penske Media Corporation, the publisher of Rolling Stone and The Hollywood Reporter, has become the first major American media company to sue Google over its AI summaries. The company claims that the AI Overviews that often appear at the top of search results leave users with little reason to click through to the source, hurting traffic and illegally benefitting from the work of its reporters.
While Penske Media is the biggest name to take on Google over its AI Overviews, it’s not the first. Online education company Chegg sued Google in February, as did a group of independent publishers in Europe. The News / Media Alliance has also spoken out about the feature, calling it the “definition of theft” and seeking action from the DOJ.
Google spokesperson José Castañeda defended the summaries to the Wall Street Journal saying, “with AI Overviews, people find search more helpful and use it more.” But Penske and other publishers say there is little reason to follow the links provided in search results and, as a result, they have seen significant drops in traffic and revenue. Penske claims in the suit that revenue from affiliate links is down by over 1/3 this year, and it attributes that directly to a drop in traffic from Google.
The company also claims it’s in a tough situation. It can either block Google from indexing its content, essentially removing itself from all search results, which would further devastate its business. Or, it can continue to provide training material to Google for its AI, “adding fuel to a fire that threatens PMC’s [Penske Media Corporation] entire publishing business,” the complaint states, according to the Wall Street Journal.