Key facts
- A judge denied a motion to dismiss Reddit's lawsuit against Perplexity AI and web scraper SerpApi.
- Reddit alleges SerpApi conspired with Perplexity AI to illegally scrape copyrighted content.
- The court found Reddit's claims plausible, allowing the case to proceed.
- Reddit CEO Steve Huffman expressed concerns about Google's AI Overviews feature reducing site referrals.
- Reddit is considering ending its lucrative licensing deal with Google.
A U.S. District Court judge has allowed Reddit's lawsuit against AI company Perplexity AI and web scraper SerpApi to proceed, ruling that Reddit has plausibly alleged a conspiracy to illegally access copyrighted content. The decision by Judge Paul A. Engelmayer came less than two weeks after a similar lawsuit filed by Google was dismissed.
Engelmayer stated that at this early stage, it is plausible that SerpApi provided a product to circumvent Google's access controls, and Perplexity AI paid for this service. This ruling is significant as it allows Reddit to argue that its licensing agreement with Google prohibits certain uses of its data, which Perplexity AI's circumvention methods allegedly bypass. Reddit contends that allowing deleted posts to remain accessible in Perplexity AI's search results harms its reputation and profits, and makes it impossible to honor user requests for content removal.
Reddit is seeking injunctions to block SerpApi and Perplexity AI from accessing Reddit and Google websites, to stop the circumvention of Google SearchGuard, and to prevent the use of previously scraped data. While Reddit celebrated the ruling, SerpApi maintains that it accesses public search results, not Reddit's platform, and that public information does not become protected simply because a platform wishes to charge for it. Reddit's claims for unjust enrichment and unfair competition were dismissed as preempted by the Copyright Act.
In parallel, Reddit CEO Steve Huffman voiced concerns about Google's AI Overviews feature during a quarterly earnings report. He argued that as AI compresses the internet into summaries, users crave real human perspective and lived experiences found on Reddit, positioning the platform as an "antidote to an automated web." Huffman noted that AI Overviews have yet to demonstrate a significant positive impact for businesses and publishers, and that consumers are increasingly skeptical of online content. Reddit is reportedly considering ending its $60 million licensing deal with Google, a move also being contemplated by other prominent publishers.