Penske Media Sues Google Over AI Overviews, Claims Major Revenue Loss

Major news publisher Penske Media Corporation sued Google in September 2025. The lawsuit targets the tech giant’s AI Overviews feature. It is the first major legal challenge from a publisher over this specific AI tool.

Penske claims the AI summaries are siphoning web traffic and revenue from its sites. This includes popular titles like Variety, Rolling Stone, and The Hollywood Reporter. The case highlights a growing industry-wide conflict over AI and copyright.

Google’s AI Summaries Are Cutting Publisher Traffic, Lawsuit Alleges

The lawsuit presents a direct financial argument. It states that about 20% of Google search results featuring Penske content now include an AI Overview. This has led to a significant drop in users clicking through to the actual articles.

The complaint notes a sharp decline in affiliate revenue. It fell by more than one third compared to late 2024. Publishers face a dilemma, as blocking Google’s AI bot would also remove them from standard search results.

This creates a cycle where every new article published potentially trains Google’s competing AI. The legal filing warns this threatens the publisher’s entire business model. According to The Wall Street Journal, Google defends AI Overviews as helpful and claims they drive more traffic to websites.

Industry-Wide Pushback Against AI Training on News Content

The Penske case is part of a larger trend. Numerous publishers globally are challenging AI companies over the use of their content. Lawsuits have been filed against OpenAI and Microsoft by entities from The New York Times to Canadian news groups.

The core grievance is consistent. Publishers allege their articles are used to train AI models without permission or compensation. This, they argue, devalues original journalism and undermines sustainable business models.

However, the publisher landscape is fractured. Some major players have chosen to cut licensing deals instead of going to court. News Corp, for instance, secured a multi-year agreement with OpenAI reportedly worth over $250 million.

A Defining Copyright Battle for the Digital Age

The legal battle centers on modern interpretations of copyright. Tech firms often claim training AI on public data is “fair use” and drives innovation. Publishers counter that their investment in reporting deserves protection and payment.

The outcome will significantly impact the future of quality journalism. Industry analysts warn that if AI summaries replace website visits, the economic foundation for newsgathering could crumble. This is not just an American issue, as publishers in India, Japan, and Brazil have raised similar concerns.

Some industry leaders advocate for a united front. They warn against repeating past mistakes of over-reliance on tech platform traffic. The goal is to negotiate from a position of collective strength to ensure fair compensation.

The lawsuit against Google’s AI Overviews represents a critical flashpoint. It pits the rapid evolution of artificial intelligence against the foundational economics of professional journalism. The final ruling could reshape how content is valued and consumed online for a generation.

Thought you’d like to know

What are AI Overviews in Google Search?

AI Overviews are AI-generated summaries that answer search queries directly on Google’s results page. They use information pulled from various websites, including news publishers. The goal is to give users a quick answer without needing to click a link.

Why are publishers suing over AI like this?

Publishers argue that AI summaries reduce the number of visitors clicking through to their websites. This directly hurts advertising and subscription revenue. They also claim their copyrighted work is used to create these summaries without permission or payment.

How has Google responded to the lawsuit?

Google has stated it believes the lawsuit’s claims are without merit. The company says its AI Overviews are designed to be helpful and actually send more traffic to a wider range of websites. It has pledged to defend itself vigorously in court.

Are other publishers taking similar action?

Yes. Many publishers have sued AI companies like OpenAI and Microsoft for using their content to train models. *The New York Times* filed a high-profile lawsuit in late 2023. Other suits have come from newspaper chains and investigative reporting centers.

Have any publishers made deals with AI companies?

Yes. Several major publishers have signed licensing agreements. This includes News Corp, The Associated Press, and Axel Springer. These deals typically involve the AI company paying to use the publisher’s content for training and answering queries.

What is the broader impact of this legal fight?

The outcome will set important precedents for copyright in the AI age. It will influence how journalists are compensated for their work online. The case could determine if publishers can sustainably coexist with AI platforms that summarize their reporting.

Trusted Sources: The Wall Street Journal, Reuters, Press Gazette, court filings.