Chegg has brought a federal antitrust law against Google. It claims that the company's use of AI-generated summaries in search engine results has crushed website traffic and revenue.
In a lawsuit filed in US District Court in Washington, DC, Sundar Pichai-led Google focused on using “AI Overview” online learning platform automatically responds to user queries at the top of search results Efficiently undemote links while generating them. Other sites.
Chegg CEO Nathan Shultz said Google “has historically unfairly retained traffic that reached Chegg, affecting acquisitions, revenues and employees,” and made Search Giant's actions “harmful and unsustainable.” “It's possible.”
The company holds Goldman Sachs as part of its strategic review and explores private or sales.
“Chegg has a product that is highly educated, as evident by brand recognition, engagement and retention,” Schultz added in its revenue call. “Unfortunately, traffic is blocked from coming to Chegg for Google [AI Overviews] And I use Chegg's content to keep visitors on my platform. ”
Chegg's shares have plummeted nearly 90% over the past 12 months, trading for just $1.04 on Tuesday morning. The company's valuation fell to just $110 million.
Google is accused of a lawsuit violating the Sherman Antitrust Act.
Schultz said Google “forces companies like Chegg to provide our own content to us in order to be included in Google's search capabilities.”
Google also engages in monopoly by increasing its dominance over smaller rivals “mustle-out” advantage over online searches and by inappropriately benefiting from Chegg's content “without spending time.” It is said to be.
Chegg's traffic from non-Subscriber sources fell by a whopping 49% in January compared to the same month a year ago.
The company detailed the lawsuit against Google, along with the disastrous results of the fourth quarter. Chegg reported a net loss of $6.1 million on total revenue of $143.5 million. This was a 24% decrease from the previous year.
Google spokesman José Castañeda pushed back the lawsuit's allegations thanks to AI's overview capabilities, claiming that “people are more useful, more useful, and more use.”
“Daily, Google sends billions of clicks to sites across the web, and AI overviews send traffic to more diverse sites,” Castañeda said in a statement. “We defend against these unworthy claims.”
As the post reported, Google has faced an avalanche of criticism of AI-generated summaries since its launch last year, with one prominent trade group, News Media Alliance, saying the feature “in the cache strap” It warns of catastrophic damage. Publisher, blogger, and content creator.
The AI overview also showed that it tends to give users strange reactions, such as by advising users to eat rocks and add glue to pizza sauce.
The publisher also accused Google of improperly rubbing data to train AI products without proper credit or reward.
Google has denied fraud.
Chegg's lawsuit shows another headache for Google after US district judge Amit Mehta discovered last year that the company had an illegal monopoly over online searches.
Mehta is scheduled to hold a court hearing in April, considering potential relief measures to address Google's tactics.
His final decision is expected by this summer.
In another lawsuit, the Department of Justice maintains the “three side” of the digital advertising sector monopoly by controlling the platform in a market that connects the advertising transaction purchases and the seller platform and advertisers to the website. I blamed Google.
