Google Wins Against Chegg and PMC in AI Previews

The antitrust challenge by Chegg and the parent company of Rolling Stone against Google's AI features fails in federal court. Judge Amit Mehta cites the limitations of antitrust law in addressing the economic effects of new technologies, as publishers report a decline in their audience while Google tests paid agreements.

The judge refers the economic issue to lawmakers as traffic declines

Judge Amit Mehta stated that the court understands the situation of publishers, but antitrust law cannot replace legislative action to address the economic impact of new innovations. Additionally, publishers continue to see a significant drop in traffic to news media and small websites since the overhaul of Google's AI-powered search. It has been reported that Google compensates about 100 publishers as part of a pilot program for their contributions to AI previews, AI mode, and Gemini.

Dismissal of antitrust complaints from Chegg and PMC

A federal court has dismissed two antitrust lawsuits filed by Chegg and Penske Media Corporation. District Judge Amit Mehta ruled in favor of Google, stating that the claims from PMC and Chegg did not hold up under antitrust law. These actions were initiated last year.

The court's reasoning in response to the accusations

Chegg and PMC accused Google of diverting web traffic through AI-powered search features, including AI previews, and abusing monopolistic power by forcing publishers to provide content for free for these previews under the threat of disappearing from search results. The complaining publishers alleged that these practices diverted traffic from their sites and harmed their revenues. Judge Amit Mehta wrote that the plaintiffs had only an expectation of receiving search traffic by making their content freely accessible, that an expectation is not an agreement, and that this falls within the operation of a general search engine. Amit Mehta had also issued a landmark antitrust ruling against Google in 2024.