Penske Media Sues Google Over AI Journalism Use

Penske Media, owner of major publications such as Rolling Stone, Billboard, and Variety, has filed a lawsuit against Google alleging that the tech giant's AI-generated summaries, known as 'AI Overviews,' use its journalism without permission and divert traffic away from its websites, resulting in a significant drop in affiliate revenue. Penske claims Google pressures publishers to allow their content to be used in these AI summaries or face exclusion from search results, exploiting its dominant position with nearly 90% of the US search market. Approximately 20% of Google searches linking to Penske sites now feature AI Overviews, a figure expected to rise, which Penske argues harms its ability to monetize content as users consume summaries instead of visiting full articles. Google responded by stating that AI Overviews enhance user experience and drive traffic to a broader range of websites, calling the lawsuit meritless. This legal action reflects broader tensions between publishers and AI companies, with some competitors like OpenAI having struck licensing agreements with news organizations, while Google has been slower to do so. The case underscores concerns over Google's market dominance and its implications for digital media's future integrity and revenue models.