Story written by Zara September 16,2025

Penske Media Corporation, the parent company of Rolling Stone, Billboard, and Variety, has taken Google to court, accusing the tech giant of illegally using its journalism to power AI-generated search summaries.

The lawsuit, filed Friday in a federal court in Washington, D.C., is the first major legal action by a U.S. publisher against Google’s new “AI Overviews” feature. Penske Media, led by CEO Jay Penske, argues that the system diverts readers away from original news sources, stripping publishers of critical ad revenue and subscription income.

According to the complaint, Google allegedly conditions visibility in search results on publishers allowing their reporting to be repurposed in AI summaries — without compensation. Penske stressed that this practice undermines digital journalism while enabling Google to leverage its 90% dominance of the U.S. search market without licensing agreements.

“We must actively defend the future of independent digital media, which is at risk under Google’s current model,” Penske Media said in a statement.

The company revealed that about 20% of Google searches involving its content now feature AI-generated overviews, with affiliate revenue plunging by more than one-third since late 2024.

Google, however, rejected the claims. Spokesperson Jose Castaneda insisted that AI Overviews make Search more useful and increase traffic opportunities for publishers, adding: “We will vigorously defend against these meritless allegations.”

The lawsuit echoes growing publisher backlash against AI misuse of original reporting. In February, online education firm Chegg filed a similar case, claiming Google’s AI tools undercut demand for its content. Meanwhile, other AI firms such as OpenAI have already signed licensing deals with major outlets including News Corp, The Atlantic, and Financial Times.

Industry groups say Google’s dominance gives it little incentive to negotiate fairly. Danielle Coffey, CEO of the News/Media Alliance, argued: “When a company has the scale and market control that Google does, it can ignore norms others in the industry follow.”

The case also comes after a recent antitrust ruling in Google’s favor, where a judge declined to force the company to sell its Chrome browser — a decision that many publishers viewed as a setback in their fight for fair competition in search.