Penske Media Sues Google Over AI Summaries, Claims Revenue Loss

- Penske Media alleges unauthorized use of journalistic content for AI-generated summaries. - Penske Media blames Google’s AI Overviews feature for significant traffic and revenue declines. On September 14, 2025, multiple media outlets reported that Penske Media Corporation has initiated legal action against Google, alleging the tech giant unlawfully republished its journalistic content for AI-generated summaries without permission or compensation. This action marks a significant step, as a prominent U.S. media company challenges an AI platform’s use of copyrighted material for automated aggregation. On the same date, Penske Media accused Google of diverting traffic from its websites with its AI Overviews feature. Penske, the publisher of iconic media brands such as *Rolling Stone*, *Billboard*, and *Variety*, claims its affiliate revenue has plummeted by over one-third since Google introduced these AI-driven summaries. Furthermore, the company states that roughly 20% of Google searches that previously directed users to its websites now display AI summaries instead, and it predicts this figure will continue to rise. The lawsuit emphasizes Google’s market dominance, pointing to the search engine’s overwhelming 90% share of the U.S. search market. It argues this dominance enables Google to impose unfair conditions on publishers, essentially forcing them to either accept content repurposing or risk losing visibility in search results. In response, Google defended its AI Overviews feature, asserting that the feature enhances content discovery and provides users with efficient access to information. The company declared Penske’s claims as meritless and vowed to contest the charges in court. This legal development highlights the broader challenges publishers face as AI technology integrates further into content discovery. While companies like OpenAI have entered licensing agreements with publishers, Google is reportedly slower to adopt similar practices. As a result, Penske’s lawsuit intensifies the ongoing debate over the equitable licensing and use of copyrighted materials, creating friction across the media industry. Observers anticipate this case may set significant precedents for revenue-sharing arrangements between publishers and AI platforms. This case is not isolated; earlier this year, the online education company Chegg launched a similar lawsuit targeting Google’s alleged harmful impacts on its business via AI services. According to CoinMarketCap on September 14, Google’s parent company Alphabet Inc. (GOOGL) was trading at $141.48 as of 12:00 UTC. This price reflects a 1.8% decrease in trading volume over the past 24 hours.