Chegg sues Google over AI overviews in an unprecedented move

In a historic step for the online education sector, Chegg has filed a lawsuit against Google, challenging the tech giant’s use of AI-generated summaries in search results that reportedly diminish traffic to Chegg’s platform. The lawsuit, which was officially lodged on February 24, 2025, marks potentially the first antitrust action by a single firm targeting an AI feature.

According to reports from Reuters, Chegg alleges that Google’s AI Overviews not only undercut its unique educational content but also coerce companies into supplying material for Google’s AI summarization without compensation. Chegg CEO Nathan Schultz articulates the broader implications of the lawsuit, arguing that it transcends the company’s immediate grievances. He asserts it touches on the fate of digital publishing, students’ access to quality educational resources, and the future of internet searches.

“Our lawsuit is about more than Chegg; it’s about the digital publishing industry, the future of internet search, and students losing access to quality learning in favor of unverified AI summaries,” Schultz stated. He provided these remarks during a conference for investors, emphasizing that the AI-generated content is not only a threat to Chegg but potentially to other educational platforms vying for visibility in an increasingly crowded space dominated by Google.

Google has countered these claims, highlighting that its search infrastructure provides billions of clicks to diverse sites across the web daily, asserting that AI Overviews enhance the availability of information. “Every day, Google sends billions of clicks to sites across the web, and AI Overviews send traffic to a greater diversity of sites,” said Google spokesperson Jose Castaneda.

This legal action comes against a backdrop of increasing unease among publishers and content creators regarding the impact of Google’s AI tools on internet traffic. The News/Media Alliance, which represents over 2,000 news publishers, previously warned that AI functionalities integrated into search could have catastrophic effects on publishers’ traffic. As the landscape of information sharing continues to evolve, Chegg’s lawsuit could act as a bellwether for future content ownership and monetization disputes.

Additionally, reports suggest that Chegg is contemplating privatization as it navigates the challenges exacerbated by the lawsuit. The repercussions of Google’s AI feature on educational resources and the potential shift in digital content economics could resonate far beyond the immediate parties involved. Stakeholders in the education technology sector will be closely monitoring the developments in this case as it progresses, given its implications for competition, quality of educational content, and the monetization strategies surrounding popular digital services.