In a legal battle that marks a significant development in the digital media landscape, Penske Media Corporation (PMC), a media powerhouse in the United States, filed a lawsuit against Google in the federal court of Washington, D.C. on Friday, September 12th. The lawsuit alleges that Google’s AI Summary feature, also known as AI Overviews, unauthorizedly uses news content without media consent, resulting in a significant decline in traffic and revenue for media websites.
This lawsuit represents the first major legal action taken by a publisher against Google’s AI automatic summary feature. Developed by its parent company Alphabet, the feature generates summary content at the top of search pages when users search for information using Google Chrome browser.
PMC, owned by Hollywood media tycoon Jay Penske’s family, produces content monthly that attracts approximately 120 million online visitors. Its media brands and websites include iconic names such as Rolling Stone, Billboard, Variety, Deadline Hollywood, and Women’s Wear Daily (WWD).
According to PMC’s claims in the lawsuit, Google only includes media websites in search results if it can use publisher articles for AI summaries. Currently, around 20% of Google search results that could direct traffic to PMC websites display AI-generated summaries directly on the search page.
PMC anticipates that this proportion may increase in the future. Furthermore, the diversion of website visitors by the AI Overview feature has led to a decrease in search traffic, directly impacting advertising revenue. By the end of 2024, their revenue had dropped by over a third compared to peak periods.
The lawsuit points out that Google nearly monopolizes the U.S. search market with a market share close to 90%, holding significant bargaining chips in negotiations. Leveraging this advantage, Google can demand that publishers allow it to use article content for AI summaries or training AI, and publishers must agree, or risk losing search traffic.
PMC stated, “We have a responsibility to actively defend the future of digital media, uphold industry integrity, and Google’s current practices are jeopardizing all of this.”
In response to PMC’s lawsuit, Google stated that the AI Summary feature can enhance user search experiences and drive traffic to a more diverse range of websites. A Google spokesperson mentioned that the AI Summary feature enhances user search experiences, increases usage, and provides content creators with new exposure opportunities. The spokesperson also stated that Google will defend its rights and refute the allegations made by the plaintiff.
This legal dispute highlights the evolving dynamics between technology giants and traditional media outlets, and its outcome could potentially shape the future of digital media consumption.