Google Goes to Court in Australia

The Australian Competition and Consumer Commission has hit Google and a local Australian Classified website, Trading Post, alleging that both parties have been engaged in "deceiptive and misleading practices" on a paid search campaign designed to take business from competitors websites.

The main argument used by the ACCC is that the Trading Post has used competitors trademarks in their paid search ads titles to advertise for its services. Google has been accused of misleading by letting this happen.

Google has annouced that they will vigorously defend these allegations. The ACCC also accused Google of misleading teh consumer by falling to properly distinguish the results from paid search and the results from organic search.

By doing so, the ACCC bring the first action of its type globally and will probably bring some change in the current almighty PPC advertsing model of Google.

The first step of the legal issues will take place in Sydney, Australia on the 21st August 2007.

To be continued