Rolling Stone's parent company Penske Media is suing Google, accusing it of illegally using its journalism to power AI Overviews, marking the first legal challenge from a major U.S. publisher.
The lawsuit claims Google uses its search monopoly to force publishers into unfair deals, impacting Penske's revenue and publishing model.
This legal action follows similar suits against Google, highlighting growing opposition to its AI strategy and potential implications for content valuation.
Penske Media, the parent company of publications like Rolling Stone and Variety, has filed a lawsuit against Google, accusing the tech giant of illegally using its journalism to power its AI Overviews. The suit marks the first legal challenge against the feature from a major U.S. publisher, setting the stage for a high-stakes battle over the future of content and AI.
An offer you can't refuse: The lawsuit alleges Google is using its search monopoly to force an unfair deal on publishers. The filing claims that to be included in search results, publishers must now allow their work to be used in ways that "cannibalize or preempt" traffic, violating the "fundamental bargain" that has long supported the open web.
Hitting the bottom line: At the heart of the complaint is the financial damage Penske claims to be suffering. The company says it's in an impossible position where it must either accept a "devastating" loss of business by blocking Google or continue to fuel a tool that "threatens" its entire publishing model. The filing states that since the rollout of AI Overviews, Penske has seen its affiliate link revenue drop by more than a third.
Joining the chorus: The lawsuit is the latest and loudest voice in a growing wave of opposition to Google's AI strategy. The move follows a similar suit filed by online education company Chegg earlier this year and an antitrust complaint from independent European publishers. Google spokesperson José Castañeda called the lawsuit "meritless," arguing the feature actually creates new opportunities for content to be discovered.
This lawsuit moves the conflict between publishers and AI developers from industry complaints to a direct legal confrontation with one of tech's biggest players. Its outcome could set a critical precedent for how content is valued and used in the age of generative AI.
While Penske takes the litigation route, some publishers like News Corp and The Financial Times are signing major licensing deals with AI firms to get paid for their content. Elsewhere, the financial stakes of these copyright battles are becoming clear, as AI startup Anthropic recently agreed to pay $1.5 billion to settle a lawsuit brought by a group of authors.
