Ankara: US-based online education firm Chegg filed a complaint against Google and Alphabet, its parent company, related to AI-based implementations, according to a press release. "We are launching a strategic review process and filed a complaint against Google, which has unjustly retained traffic that has historically come to Chegg, impacting our acquisitions, revenue, and employees," said Nathan Schultz, Chegg's CEO, on Monday.
According to Anadolu Agency, Schultz further explained that the need for a strategic review arose after Google launched AI Overviews (AIO), which has diverted traffic away from Chegg. Schultz asserted that this implementation has significantly affected Chegg's acquisitions, revenue, and employee welfare. He claimed that the traffic is being blocked from reaching Chegg due to Google's use of Chegg's content, which keeps visitors on Google's platform instead.
In response to these challenges, Chegg has engaged Goldman Sachs as its financial advisor to assist with the strategic review. Additionally, Susman Godfrey has been retained to handle the legal aspects of the complaint against Google.