Chegg has filed a federal antitrust lawsuit against Google-claiming that the use of the company for summaries created by it in the search engine has suppressed traffic and its revenue online.
In a trial set up in the US District Court in Washington DC, the online learning platform focused on the use of Google Sundar Pichai 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 appears from the awareness, engagement and keeping our brand,” Schultz added in calling 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 almost 90% over the last 12 months and were trading at 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 “forces 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 “muscles” smaller and unfairly taking advantage of Chegg “without having to spend a while,” said CEO I Chegg.
Chegg traffic from non-artistic sources fell with a 49% whip in January compared to the same month a year ago.
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 income of $ 143.5 million-a 24% decrease 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 the sites across the network, and it sends it to a larger variety of pages,” Castañeda said in a statement. “We will defend against these claims without merit.”
As the post reported, Google has faced publishers, bloggers and content makers.
He’s summaries also shown 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 with properly scraping websites for data 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 litigation, the Department of Justice has accused Google of maintaining a “trifecta” of monopolies in the digital advertising sector by checking platforms on the purchase and sale of advertising agreements, as well as the market that connects advertisers to the sites of the sites Internet.
#Chegg #accuses #Google #suppress #traffic #income #antitrust #lawsuit #harmful #unstable
Image Source : nypost.com