Penske Media Corporation (PMC), the US powerhouse behind Rolling Stone, Billboard, Variety and The Hollywood Reporter, has launched a lawsuit against Google, alleging the tech giant’s AI-generated search summaries siphoning revenue, clicks and ad dollars.
Filed in federal court in Washington, D.C., the complaint marks the first time a major U.S. publisher has taken Google to court over “AI Overviews”, the summaries that appear at the top of search results. Penske alleges these answers reduce traffic to its websites and use its journalism without consent.
“We have a responsibility to proactively fight for the future of digital media and preserve its integrity – all of which is threatened by Google’s current actions,” Penske said.
Penske claims about 20% of Google searches linking to its sites now display AI Overviews, a figure it expects to rise. The company alleges its affiliate revenue has already seen a significant his from its peak by the end of 2024 as search traffic declined.
The lawsuit paints a catch-22 for publishers. If Penske blocks Google from indexing its articles, it effectively disappears from search results. If it doesn’t, it continues to “add fuel to a fire that threatens PMC’s entire publishing business,” according to the complaint, cited by the Wall Street Journal.
Penske argues Google is leveraging its near 90% share of the U.S. search market to dictate terms: publishers must allow their work to be repurposed in AI Overviews or risk being excluded entirely.
Google insists AI Overviews improve search, not undermine it. “With AI Overviews, people find Search more helpful and use it more, creating new opportunities for content to be discovered. We will defend against these meritless claims,” said Google Spokesperson Jose Castaneda.
In a blog post last month, Liz Reid, Google’s VP and head of Search, defended the company’s data, claiming “overall, total organic click volume from Google Search to websites has been relatively stable year-over-year.”
Reid added: “We’re actually sending slightly more quality clicks to websites than a year ago… an AI response might provide the lay of the land, but people click to dive deeper and learn more, and when they do, these clicks are more valuable.”
She suggested shifts in traffic patterns may have more to do with user behaviour than Google’s technology. “People are increasingly seeking out and clicking on sites with forums, videos, podcasts, and posts where they can hear authentic voices and first-hand perspectives,” Reid wrote.
An Industry Under Siege
Penske’s lawsuit comes amid a wave of publisher pushback against AI platforms. Online education company Chegg sued Google earlier this year, while a group of European publishers filed similar suits. The News/Media Alliance, representing over 2,200 publishers, has called AI Overviews the “definition of theft.”
“All of the elements being negotiated with every other AI company doesn’t apply to Google because they have the market power to not engage in those healthy practices,” Danielle Coffey, CEO of the News/Media Alliance said.
“When you have the massive scale and market power that Google has, you are not obligated to abide by the same norms. That is the problem.”
Other media giants are already in litigation. The New York Times, Chicago Tribune, and New York Daily News are involved in legal discussions with OpenAI and Microsoft. News Corp, meanwhile, has sued AI search engine Perplexity, with CEO Robert Thomson branding its behaviour “an abuse of intellectual property that harms journalists, writers, publishers.”
The lawsuit underscores a pivotal moment for digital media. Independent studies have found 69% of news-related searches now end in zero clicks, up sharply from 56% just a year earlier. Penske says the effects are already material.
For publishers, the question is existential. Do they continue to feed the AI systems eroding their traffic, or risk cutting themselves off from the world’s dominant search engine?
As Penske put it: “We have a responsibility to proactively fight for the future of digital media and preserve its integrity – all of which is threatened by Google’s current actions”.
