Chegg has filed a federal antitrust lawsuit against Google-Alleging that the use of the company for summaries created by it in the search engine results has suppressed traffic and its revenue online.
In a lawsuit folder at the US District Court in Washington DC, the online learning platform focused on the use of Google’s Google Sundar of “AI Summary”-A controversial feature automatically generates answers to user questions in top of the search results, while the effective demotation of links to other sites.
Chegg General Director Nathan Shultz said Google “has unjustly saved the traffic that has come to a historically to Chegg, affecting our purchases, income and employees” and described the research giant’s behavior as “harmful and unstable” .
The company has kept Goldman Sachs as part of the strategic review and will explore by going private or selling itself.
“Chegg has a superior product for education, as it seems from consciousness, engagement and keeping our brand,” Schultz added to call the company’s profits. “Unfortunately, traffic is being blocked from ever coming to Chegg because of Google [AI Overviews] and their use of Chegg content to keep visitors on their platform. “
Chegg shares have fallen close to 90% over the last 12 months and were trading with a slightly $ 1.04 since Tuesday morning. The company’s rating has dropped to only $ 110 million.
Google is charged in a lawsuit for violating the Sherman antitrust act.
Schultz said Google “strengthens companies like Chegg to supply our owner’s content in order to get involved in Google search function”.
Google is also claimed to have engaged in monopoly maintenance by bending its predominance while searching online to “muscle” smaller rivals, and improperly benefiting from Chegg content “without having to spend a while” , said CEO Chegg.
Chegg traffic from non-artistic sources fell with a 49% whip in January compared to the same month a year.
The company detailed its lawsuit against Google along with the valuable results of the fourth quarter. Chegg reported a net loss of $ 6.1 million in total revenue of $ 143.5 million-a 24% reduction from year to year.
Google spokesman José Castañeda withdrew to the claims of the lawsuit, claiming that “people see the most useful search and use it more” thanks to the feature of it.
“Day every day, Google sends billions of clicks to sit online, and it sends it traffic to a larger variety of pages,” Castañeda said in a state. “We will defend against these claims without merit.”
While reporting the post, Google has faced publishers, bloggers and the contents of the creator.
He also summarized that they were prone to giving strange answers, such as advising users to eat rocks or add glue to their pizza sauce.
Publishers have also accused Google of properly scraping their website to train their products without credit or proper compensation – and then using products to compete against them.
Google has denied wrongdoing.
Chegg’s lawsuit marks another headache for Google after American district judge Amit Mehta revealed last year that the company has an illegal monopoly on online search.
Mehta is expected to hold court hearings in April while examining possible remedies to address Google tactics.
His latest decision is expected from this summer.
In a special lawsuit, the Justice Department has accused Google of maintaining a “trifecta” of monopolies in the digital advertising sector from control platforms on the purchase and sale of ad -arrangements, as well as the market that connects advertisers to the site with Internet.
#Chegg #accuses #Google #suppress #traffic #income #antitrust #lawsuit #harmful #unstable
Image Source : nypost.com