In a recent correspondence addressed to the Federal Trade Commission (FTC) and the Department of Justice (DOJ), the News/Media Alliance has expressed significant concerns over Google’s potentially monopolistic behaviors in the realm of digital news publishing. The Alliance urges a thorough investigation into Google’s use of generative artificial intelligence (AI) in its search product, known as AI Overviews, which is alleged to harm the digital news ecosystem by limiting traffic to original content creators.
Google’s Search Generative Experience (SGE), introduced nationally on May 14, 2024, utilizes content from various publishers to craft detailed “AI Overview” responses to user inquiries. This technology is designed to satisfy user queries directly on Google’s platform, potentially decreasing the number of visitors to third-party websites. According to News/Media Alliance President and CEO, Danielle Coffey, “Google claims that this new product will result in increased traffic, but one of many studies estimates that 90% of users will never leave Google’s search results page.” This strategy risks reducing the revenue streams available to publishers from advertising, subscriptions, and affiliate links by keeping users within Google’s ecosystem.
Moreover, the Alliance criticizes Google’s recent Site Reputation Abuse policy, which has removed publishers’ content related to coupons, sports betting, lottery, and gaming from its search results. Ironically, Google’s SGE/AI Overviews have begun providing promo codes in response to queries, even as they exclude similar offers from competing publishers. “Over time the value exchange that once existed with opting into Google search is no longer the reality. Feeding more of our content to users inside Google’s walls has not in fact led to proportionally increased revenue, as the dominant search engine asserts,” Coffey elaborates.
For small business owners and solopreneurs, the evolving dynamics in digital content distribution and monetization signal crucial shifts. Staying informed and adaptive to these changes is essential for leveraging content effectively and ensuring sustainable business practices in an increasingly AI-integrated market landscape.