Internet titan Google was cleared on Wednesday of allegations it hosted deceptive advertisements, with Australia’s highest court saying it was not responsible for companies who diverted users from their competitors’ sites.
Australia’s competition regulator had taken Google to court, alleging that adverts using keywords for Honda, Harvey World Travel, Alpha Dog Training and Just 4X4 Magazine published by Google had led consumers to rival firms.
The Australian Competition and Consumer Commission (ACCC) lost the initial case but won an appeal in the Federal Court, which ruled that Google’s technology created its search results.
Google had argued that it should not be held responsible for the content of ads on its platform because it was paid for and submitted by the advertisers under the highly profitable Google AdWords programme.
AdWords allows firms to create their own ads and bid for keywords linked to their products. In the Australian case, travel, automotive and pet-care companies successfully bid on the names of their rivals as keywords.
The High Court of Australia overturned the appeal decision on Wednesday, agreeing that the advertisers, not Google, were responsible for the content of so-called sponsored links.