Penske Media Sues Google Over AI Overviews Feature
Key Points
- Penske Media filed a lawsuit in Washington, DC's federal district court against Google.
- The suit alleges Google’s AI Overviews use Penske’s content without permission.
- Penske says AI Overviews siphon traffic, causing a revenue drop of more than a third.
- About 20 percent of Google searches linking to Penske sites now display AI Overviews.
- Google calls the claims meritless and says the feature drives traffic to diverse sites.
- The case follows earlier lawsuits against Google’s AI tools and actions against other AI firms.
Penske Media, the publisher behind titles such as Rolling Stone and Variety, filed a lawsuit in Washington, DC's federal district court accusing Google of illegally using its website content to power the AI Overviews feature. The publisher claims the feature siphons traffic and revenue from its sites, noting that about 20 percent of Google searches linking to Penske properties now display AI Overviews. Google has called the claims meritless and says the feature drives traffic to a broader range of sites.
Background
Penske Media, which represents major entertainment and music publications, has taken legal action against Google, alleging that the tech giant’s AI Overviews feature relies on content from Penske’s websites without permission.
Allegations
The lawsuit, filed in Washington, DC's federal district court, asserts that AI Overviews "siphon and discourage user traffic" to Penske’s sites, leading to a decline in revenue generated from those visits. Penske points to data indicating that roughly 20 percent of Google searches that link to its sites now include an AI Overview, and it expects that share to grow.
Impact on Revenue
Penske claims its affiliate revenue through 2024 dropped by more than a third from its peak, attributing the loss to the AI Overviews diverting user attention away from the publisher’s pages.
Google’s Response
Google spokesperson Jose Castaneda labeled the lawsuit’s claims as meritless and vowed to defend against them. He argued that AI Overviews actually send traffic to a greater diversity of sites, countering the allegation that they reduce visits to Penske properties.
Broader Context
This case follows earlier legal challenges to Google’s AI search tools, including a lawsuit from educational tech company Chegg. It also mirrors actions taken against other AI firms, such as the New York Times’ suit against OpenAI and Anthropic’s recent settlement over its Claude chatbot.
Potential Outcomes
The lawsuit could set precedent for how AI-driven search features source and display copyrighted content, influencing future relationships between publishers and technology platforms.