The showdown between AI-focused tech giants and news organizations is escalating. Google is now facing serious accusations, with a major media advocacy group outright calling its new AI Mode for Search “theft” of publisher content. This isn’t just a squabble over algorithms; it’s a fundamental debate about who benefits from online information and whether Google is unfairly tilting the playing field.
The News/Media Alliance (N/MA), representing a vast network of U.S. news and magazine publishers, has taken its grievances directly to the Federal Trade Commission (FTC). Their core argument is that Google’s AI-powered search features, designed to provide instant answers, are siphoning off the very traffic and revenue that news sites rely on. They consider that AI is using their content without adequate compensation.
Google’s “AI Mode” Controversy: Publishers See It as Content Theft
The N/MA’s most pointed criticism targets Google’s new AI Mode. This feature integrates an AI chatbot directly into search results, summarizing information for users. While convenient, publishers argue this feature keeps users on Google’s own properties instead of directing them to the original sources. Danielle Coffey, CEO of News/Media Alliance, stated that Google’s approach “deprives publishers of traffic and site revenue.”
For years, even with algorithm changes, direct links from Google Search were considered the “last redeeming quality” for publishers in terms of referral traffic. Now, with AI Overviews and conversational AI tools, publishers are reporting significant drops. Studies show that the presence of AI in search results correlates with organic clickthrough rates plummeting by over 50% for some publishers. This directly translates to fewer subscriptions and a steep decline in referral traffic. In turn, traffic has reportedly dropped from previous highs of 50-80% down to 20-30%. The N/MA is adamant: using their content to train and power these AI models without fair compensation or even opt-out options is, quite simply, “theft.”
Beyond AI: The “Site Reputation Abuse” Policy Adds Fuel to the Fire
While AI is the latest flashpoint, the N/MA’s criticism extends to other Google policies. It highlights the Site Reputation Abuse policy. Publishers claim Google has used this policy to unilaterally de-rank or even delist portions of their websites. It has particularly affected pages featuring coupons, promotional content, or specific information for gaming and sports betting. These actions were reportedly taken without consultation or warning, despite the content often being a valuable resource for consumers.
The N/MA argues that these policies lack transparency, with unclear appeals processes and inconsistent enforcement. They also believe these actions are designed to benefit Google’s own commercial and advertising products. Overall, this allegedly results in an unfair competitive landscape. They see it as a clear abuse of Google’s dominant market position.
A Call to Action for the FTC
The News/Media Alliance is urging the FTC to take decisive action. Plaintiff publishers are calling for an investigation into Google’s “anti-competitive practices” and its “abuse of monopoly power.” They want regulators to curb what they see as Google’s “imperial” approach to content moderation and its use of AI. They argue that these practices are stifling competition and harming the vital news ecosystem.
This legal and public relations battle underscores the growing tension as AI reshapes the digital landscape. For publishers, it’s a fight for survival, ensuring that the valuable content they produce is fairly recognized and compensated, rather than simply being absorbed into powerful AI models that direct traffic away from their sites. The outcome of this dispute could set a significant precedent for how content creators interact with AI platforms.
