Penske Media Challenges Google Over AI’s Impact on Revenue

• Penske Media sues Google, alleging AI misuse in search summaries.
• Claims AI Overviews cut traffic, slashing affiliate revenue by 33%.

Penske Media, the parent company of Rolling Stone, Billboard, and Variety, has filed a lawsuit against Google, accusing the company of unlawfully using its journalism to create AI-generated summaries. On September 14, 2025, Reuters reported that the legal action was filed in a Washington, D.C. federal court and represents the first major legal challenge by a U.S. publisher over AI summaries in Google’s search results.

The lawsuit alleges that Google's "AI Overviews" feature significantly reduces traffic to Penske’s websites, harming its advertising and subscription revenues. Penske Media claims that affiliate revenue has dropped by more than one-third from its peak by the end of 2024. The complaint states that approximately 20% of Google searches that previously linked to Penske’s content now display AI-generated summaries instead, diverting user engagement away from its platforms.

Jay Penske, the CEO of Penske Media, emphasized the broader stakes for the digital media industry. In a statement, he said, "We have a responsibility to proactively fight for the future of digital media and preserve its integrity – all of which is threatened by Google’s current actions." The lawsuit also accuses Google of leveraging its near-90% dominance of the U.S. search market to pressure publishers into allowing their content to be used for AI summaries in exchange for visibility in search results.

Google has defended its actions and dismissed the claims as unfounded. Speaking on the matter, Google spokesperson Jose Castaneda referred to the lawsuit as "meritless" and argued that AI Overviews enhance the search experience while creating new opportunities for publishers to reach audiences.

This lawsuit follows a similar legal dispute by Chegg, an online education company, which sued Google earlier this year for alleged harm caused by AI-generated summaries. The Penske case highlights growing tensions between publishers and tech companies over licensing arrangements, content attribution, and fair compensation in the rapidly evolving AI landscape.