US EdTech Firm, Chegg Sues Google Over AI Overviews, Citing Internet Disruption

Google’s AI overviews are under legal scrutiny as an American edtech firm has sued the tech giant for allegedly damaging online businesses with its AI-powered search previews. Reuters reported that in a lawsuit filed on Monday, a U.S. edtech company said Google, the internet search engine is eroding demand for original content and undermining publishers’ ability to compete with its AI-generated overviews

The online edtech firm, Chegg, provides textbooks on rentals, homework help, and tutoring. The company said, “This will eventually lead to a “hollowed-out information ecosystem of little use and unworthy of trust.” CEO Nathan Schultz said on Monday, “The company is now considering a sale or take-private transaction as a result.”

The court dispute is rooted in the manner that Google’s AI overviews display generated answers on the top of search pages. According to the U.S edtech giant, this mode reduces the incentive for users to visit original websites, harming content-oriented sites whose revenue comes from search traffic. The Google AI overview case has drawn new interest in Google AI issues, which have been building as artificial intelligence transforms search engines and finding information online.

Google’s spokesperson, Jose Castaneda, said on Monday, “With AI Overviews, people find Search more helpful and use it more, creating new opportunities for content to be discovered. Every day, Google sends billions of clicks to sites across the web, and AI Overviews send traffic to a greater diversity of sites”

Impact on Websites and Content Creators

Website owners and content creators express their displeasure on Google AI overviews impact on web-based content. AI-generated abstracts extract essential content points from articles and blogs thus creating diminished motivation for readers to visit the original pieces. The policy fuels a crisis in the internet ecosystem because it damages advertising revenue streams along with the decrease in reach of independent publishing sites.

The legal action boosts the existing government oversight aimed at Google. Examiners are currently analyzing if the claims about Google AI antitrust violations present a valid argument. Regulatory authorities accuse Google of breaking antitrust rules when they maintain users inside its platform because this usage, which stems from market dominance, appears to be illegal. In 2024, the U.S. federal government targeted the Big techs with tougher regulations.

Google Under Investigation for AI Overviews

This lawsuit comes at a time of increased scrutiny where US and European regulators are investigating Google’s AI-overview operations. This lawsuit will establish rules for AI search feature management which will be significant because governments aim to maintain AI technologies from suppressing competition while preserving content diversity. In January 2025, U.K. also launched an antitrust investigation against Google and Apple mobile phones.

The continued development of Google AI overviews generates increasing legal and regulatory barriers. US edtech companies are leading another challenge against the implementation of search innovations managed by artificial intelligence through their recent Google AI lawsuit. Online businesses face an uncertain future regarding their digital visibility and market survival because Google faces an investigation for AI overviews and antitrust concerns continue to rise.

Schultz said, “Our lawsuit is about more than Chegg – it’s about the digital publishing industry, the future of internet search, and about students losing access to quality, step-by-step learning in favor of low-quality, unverified AI summaries.”