Publicly trading education technology company, Cheg, has sued Google on its AI interviews, claiming that they have hurt its traffic and revenue. Company Said This AI interview is “affecting our acquisition, revenue and employees.”

What the Cheg said. Chag wrote,

Second, we we Google LLC and Alphabet Inc. Announced to file a complaint against. These two actions are attached, as we would not need to review strategic options if Google did not launch an AI overview, or AIO, maintaining traffic that came historically. Chegg, affects our acquisition, revenue and employees. Cheg has a better product for education, as is evident from our brand awareness, engagement and retention. Unfortunately, due to the AIO of Google and their use of cheg content to put visitors on their platforms, the traffic is being blocked from coming into the cheg anytime. We maintained Goldman Sachs as a financial advisor in relation to our complaint against our complaint against Google and financial advisor in relation to Suzman Godfrey.

More information. CNBC Reports This “Chegg is less than $ 200 million, and after trading on Monday, the stock was trading above $ 1 per share.” Cheg has attached Goldman Sachs to see options acquired for the company or to get other strategic options.

Cheg reported a net loss of $ 6.1 million at $ 143.5 million in the fourth quarter revenue, according to one, the year -on -year decline by 24% statementAnalysts provided by LSEG expected $ 142.1 million in revenue. The management called for the first quarter revenue between $ 114 million and $ 116 million, but analysts set a target of $ 138.1 million. The stock was 18% below in extended trading.

The report states that Google has emphasized companies like CHEGG to supply our ownership materials to be included in Google's search function, “Schultz said, search company uses its monopoly power. It is, “Rekind the financial benefits of the material content, without spending a penny.”

Here is more than Cheg's statement:

While we created important headways on our technology, product and marketing programs, came up with a series of 2024 challenges, including the rapid development of the material landscape, especially the rise of Google Aio, as I have mentioned earlier, There is a deep impact on the traffic, revenue and workforce of the cheg. As already mentioned, we are filing a complaint against Google LLC and Alphabet Inc. in the US district court for Colombia district, giving three main arguments.

  • The first is mutual behavior, which means that Google has emphasized companies like CHEGG to supply our ownership materials to include Google's search function.
  • The second monopoly is maintenance, or that Google has used its monopoly power within the discovery and other anti -competitive conduct to exclude companies such as Cheg.
  • And the third is the unjust enrichment, which means that Google is receiving the financial benefits of the intelligent content without spending a dime.

As we accuse in our complaint, Google AIO has converted Google from “search engine” to a “north engine”, displaying the ingredients received from third-party sites like Chegg, displaying AI-generated materials. Is. The expansion of Google's AIO forces traffic to live on Google, eliminating the need to visit the third-party source sources sites. The impact on the business of the cheg is evident. In January 2025, our non-consortible traffic fell to 49%, which is significantly below the slight 8% decline in Q2 2024.

We believe that this is not just about the cheg-this is about learning in favor of students with less quality, uneven AI summary to learn quality, step-by-step. It is about the digital publication industry. This is about the future of internet search.

In summary, our complaint challenges Google's unfair competition, which is unjust, harmful and unstable. While this action is just starting, we believe that bringing this case is necessary and well established.

Why do we care? Will Cheg win in a court against Google? Will Google have to rethink their AI observation and find better ways to send traffic to publishers and site owners? It is difficult to imagine but it can be the first major lawsuit on Google's new AI interviews.