Chegg Inc. has filed a lawsuit against Google, accusing the tech giant of undermining publishers by using AI-generated overviews that reduce demand for original content.
The online education company, known for textbook rentals and homework help, filed the case in Washington, D.C., claiming Google’s AI overviews keep users on its platform, cutting traffic to publishers’ sites and damaging their financial models. Chegg warned this could create a “hollowed-out information ecosystem” lacking reliability and trust.
Chegg’s CEO, Nathan Schultz, revealed that AI overviews have led to a decline in visitors and subscribers, pushing the company to consider a sale or take-private deal. Chegg’s shares closed at $1.57 on Monday — a sharp drop of over 98% from their 2021 peak — after announcing 21% staff layoffs in November.
In response, Google spokesperson Jose Castaneda called the claims “meritless,” asserting that AI overviews drive more traffic to a wider range of sites and enhance search experiences.
Chegg argued Google profits from their content without compensation, forcing publishers to allow AI use or risk losing visibility. They claim Google violates antitrust laws by conditioning search result visibility on access to content for AI features.
This marks the first lawsuit by a single company accusing Google of antitrust violations linked to AI overviews. A similar class action by an Arkansas newspaper in 2023 raised concerns on behalf of the news industry.
The case will be overseen by U.S. District Judge Amit Mehta, who previously ruled that Google holds an illegal monopoly in online search — a decision Google is appealing.
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