Penske Media, the parent of Rolling Stone, Billboard, and Variety, sued Google in federal court on Friday, accusing the tech giant of misusing its journalism to fuel AI Overviews. The lawsuit is the first by a major U.S. publisher that is centered on Google’s AI summaries, which appear atop search results. Publishers say the feature drains readers away from original reporting at a time when the industry is already fighting for survival.
Publishers say AI Overviews drain traffic
Penske alleged that Google only includes publishers’ websites in search if their articles can also be used in AI Overviews. Without that leverage, Google would have to negotiate licenses, as other AI companies have done.
The company said about 20% of Google searches that link to its sites now display AI summaries, a share it expects to rise. It added that affiliate revenue has fallen as search-driven traffic declined.
Google rejects claims, defends the feature
Reuters reported that Google has denied the allegations. Spokesperson Jose Castaneda said AI Overviews make search “more helpful” and create new opportunities for content to be discovered. He said the company would defend against what it called “meritless claims.”
Google has insisted its AI features broaden, not shrink, the pool of sites users visit. Still, publishers argue that when answers appear in summaries, fewer readers click through to original articles.
Market power gives Google an edge
Penske pointed to a federal court finding that Google controls nearly 90% of the U.S. search market, arguing the company used that dominance to impose terms publishers could not refuse.
The News/Media Alliance, which represents more than 2,200 publishers, echoed the concern. Its chief executive, Danielle Coffey, told Reuters that unlike other AI firms that have signed licensing deals with News Corp, The Atlantic, and the Financial Times, Google has been slower to engage. She said Google’s market power allows it to avoid the licensing practices others have adopted.
A fight over journalism’s future
For Penske, the lawsuit is about more than lost traffic. “We have a responsibility to proactively fight for the future of digital media and preserve its integrity,” the company said in a statement.
The outcome could set a precedent for how AI platforms use news content. If Penske wins, Google may be forced to pay publishers or alter how it deploys summaries. If Google prevails, publishers could face deeper losses as AI intermediates more of the web.
The case underscores a broader question at the heart of the AI era: whether generative systems complement original journalism or cannibalize it. For publishers, the stakes are existential.
Read the eWeek analysis piece about whether journalism will survive AI summaries.
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