① As chatbots gradually replace Google searches, eliminating the need for users to click on 'blue links' leading directly to specific websites, the result is a sharp decline in traffic that online media have relied on for years. ② Last week, the first lawsuit in the U.S. over 'AI siphoning website traffic' finally emerged...
Cailian Press reported on September 15 (edited by Xiaoxiang) that as previously reported in June, for many American online news publishers, the once deeply feared 'doomsday scenario' of the AI era seems to have arrived — as chatbots gradually replace Google searches, eliminating the need for users to click on 'blue links' leading directly to specific websites, the result is a sharp decline in traffic that online media have relied on for years.
Last week, the first lawsuit in the U.S. over 'AI stealing media traffic' finally emerged...
It is reported that Penske Media, the American publisher owning Rolling Stone and The Hollywood Reporter, has now filed a lawsuit against Google, accusing its AI-generated summaries displayed at the top of search results of illegally using content from its reports and causing a decline in traffic to its websites.
Penske filed this antitrust lawsuit in the U.S. District Court for the District of Columbia last Friday evening. Notably, a judge at the same court ruled last year that Google held an illegal monopoly in the internet search domain.
Penske Media has thus become the first major American news publisher to challenge Google and its parent company Alphabet in court over the widespread use of AI. Meanwhile, numerous American publishers have recently expressed that AI is harming their businesses.
In its complaint, Penske Media stated that approximately 20% of Google search results containing links to its websites are accompanied by AI-generated summaries, and this proportion continues to rise.
The complaint pointed out that revenue generated through affiliate shopping links on its websites has dropped by more than one-third, attributable to reduced traffic from Google searches.
The complaint stated, 'Such (traffic) diversion and obstruction of user flow to Penske and other publishers’ websites will cause profound damage to the overall quality and quantity of information on the internet.'
Penske Media accused Google’s AI functionality of being built upon information provided by Penske free of charge. The publishing company claimed it has been caught in a dilemma: blocking Google from displaying its websites in search results would severely harm its business; however, continuing to provide content unintentionally fuels Google’s AI summarization feature.
The complaint states, "Each time Penske publishes an article on its own website, it is compelled to provide Google with additional material for training and enhancing its AI models, which only exacerbates the situation and, in turn, further jeopardizes Penske's entire publishing business."
The lawsuit seeks a permanent injunction against Google's alleged illegal practices and monetary compensation for damages.
Escalation in Traffic Competition
In fact, several media companies have previously sued other artificial intelligence firms over unauthorized use of information. However, this case marks the first involving competition for traffic.
Last year, Google prominently launched its AI Overviews feature, powered by the Gemini large language model, which summarizes search results at the top of the page. This quickly undermined traffic to websites offering content such as vacation guides, health tips, and product reviews. In the second quarter of this year, the company also introduced a new search mode called AI Mode in the United States. As AI Mode responds to user queries in a chatbot-style dialogue, the number of links provided has been significantly reduced.
According to data released by digital market analytics firm Similarweb in the second quarter of this year, as AI replaces traditional search methods, organic search traffic to The Huffington Post's desktop and mobile websites has declined by more than half over the past three years, while The Washington Post’s organic search traffic has nearly halved.
In response to Penske’s complaint, Google maintains that its AI functionalities benefit the broader content ecosystem.
Google spokesperson José Castañeda stated, "With AI Overviews, people find search more helpful and use it more frequently, creating new opportunities for content discovery. Google drives billions of clicks to websites daily, and AI Overviews direct traffic to a more diverse range of sites. We will vigorously refute these unfounded allegations."
Castañeda also argued that the quality of link clicks associated with AI Overviews is higher, as users tend to spend more time on the linked pages.
