Chegg sues Google as a result of he violated site visitors as a result of it takes options into consideration

Chegg seen on February 13, 2025 on the New York stock exchange.

Danielle Devries | CNBC

Cegg On Monday, lawsuit was submitted to the Federal District Court against a GoogleWith the assertion that the summaries of artificial intelligence of search results affect traffic and sales of the online education company.

The legal step takes place for almost two years after the former CEO Dan Rosenweig shared who deal with Openas Chatgpt Assistant to achieve the new customer growth of Chegg.

Chegg is worth less than $ 200 million, and on Monday by trading in trading in trading with a share of just over $ 1 per share. Chegg has commissioned Goldman Sachs and will look at strategic options, including the acquisition and private, president and CEO Nathan Schultz to analysts in a profit connection on Monday.

According to a statement, Chegg recorded a net loss of $ 6.1 million for $ 143.5 million in sales with the fourth quarter, a decrease of 24% compared to the previous year. Analysts surveyed by LSEG had expected sales of $ 142.1 million. Management called for sales between $ 114 million and $ 116 million in the first quarter, but the analysts had $ 138.1 million. The share decreased by 24% in extended trading.

Google forces companies such as Chegg to “deliver our proprietary content to be included in Google's search function,” said Schultz, adding that the search company uses its monopoly power and uses the financial advantages of Cheggs without spending a cent must. “

Despite the suit, Chegg has its own AI strategy. It dressed Meta Open source Lama as well as models from privately kept anthropic and mistals, said Schultz. In addition to Google, Chegg also teamed up with Openaai, which the educational company sees as a competitor. The company reported that 3.6 million students had subscriptions in the fourth quarter, which corresponds to a decline of 21%. Subscribers include access to AI-driven learning aid. Chegg also rents textbooks and sold.

AI overviews, as the summaries of Google's artificial intelligence are called, are available in the company's search engine in over 100 countries with more than 1 billion users, the company said in October. They are displayed in the search results via links to other pages.

A Google spokesman announced CNBC that the company would defend itself against Chegg's lawsuit, which claimed that the search company had violated § 1 and two of the Sherman Antitrust Act from 1890.

“Every day, Google sends billions of clicks on websites throughout the web, and AI overviews send data traffic to a greater variety of websites,” said Google spokesman.

Chegg claimed that Google had raised 135 million questions and answers to a variety of topics in its model training data sets on Chegg's collection of 135 million questions.

After training its models, Google can generate content that competes with information that has offered publishers in the search results, Chegg argued in his complaint. The online learning company contained a screenshot of a Google -Ki overview that lends details from the Chegg website, but does not attribute the information. However, the relevant CHEGG page is shown lower in the search results.

Chegg quoted the judgment of a federal judge last August in August that Google Google A monopoly holds on the search market. The decision came after the Ministry of Justice submitted its pioneering case in 2020 and claimed that Google had checked the general search market by creating strong entry barriers and creating a feedback loop that supported its dominance.

REGARD: Google triggers AI overviews in six other countries