Google wins AdWords case in Australia High Court

Managing IP is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Google wins AdWords case in Australia High Court

The Australia High Court has unanimously overturned a lower court’s ruling that Google was responsible for misleading advertisements in its AdWords programme

In today’s Google vs Australian Competition and Consumer Commission decision, the High Court found that Google was merely a publisher and not the author of any of the advertisements in its AdWords programme, which creates sponsored links based on the user’s internet search.

If the user enters a search term for a company or product name, the advert would sometimes be that of a competitor. The content and text accompanying the sponsored link is written by the company advertising on Google.

The Australian Competition and Consumer Commission (ACCC), a government watchdog, alleged that Google violated section 52 of the Trade Practices Act 1974, which states that “[a] corporation shall not, in trade or commerce, engage in conduct that is misleading or deceptive”.

The trial court found that some of the advertisements were misleading but that Google merely communicated the advertisers’ representations. On appeal, the Full Federal Court reversed, finding that “Google’s conduct cannot fairly be described as merely passing on the statements of the advertiser for what they are worth”.

The High Court reversed the Full Federal Court’s decision, stating that “Google did not author the sponsored links; it merely published or displayed, without adoption or endorsement, misleading representations made by advertisers.”

The ACCC had argued that through its keyword-matching technologies, Google had produced the misleading advertisements. The High Court rejected this argument stating that even with Google’s keyword technology, “[t]he automated response which the Google search engine makes to a user's search request by displaying a sponsored link is wholly determined by the keywords and other content of the sponsored link which the advertiser has chosen. Google does not create, in any authorial sense, the sponsored links that it publishes or displays.”

The High Court emphasised that the decision does not go into whether the four underlying adverts in these cases were themselves misleading, but only whether Google’s conduct violated section 52.

Gilbert + Tobin represented Google, while Corrs Chambers Westgarth represented the ACCC.

Last year, software maker Rosetta Stone sued Google in the US, alleging that the AdWords programme infringed its trade mark. The companies eventually settled the dispute.

more from across site and SHARED ros bottom lb

More from across our site

A principal at Schwegman Lundberg & Woessner explains how AI tools, including DeepIP, can position the firm to help clients
The firm explains why AI-empowered data analytics could make it more efficient advocates for its clients
Penelope Aspinall, of IP wellbeing charity Jonathan’s Voice, explains why managers should take a three-tiered approach to looking after workers’ mental health
Heath Hoglund talks about the value proposition of patent pools and why it went ahead with its first-ever series of pool meetings in China
Ryan Richardson, Chris O’Brien, and Jean Selep of Sterne Kessler analyse the treatment of SEPs at the UPC and ITC and highlight why SEP holders and implementers should be mindful of current developments in both forums
A ruling concerning the UPC’s jurisdiction, questions over costs transparency, and a missed deadline by Amazon were among the top talking points this fortnight
Exclusive data and analysis reveal how firms can differentiate themselves when it comes to costs and value
The Berlin office will mark the firm’s fourth German base and tenth overall
As we build up to another busy year for the IP STARS rankings and Managing IP Awards, we give a rundown of some of the major IP firms and trends in the UK
Three firms have received at least 13 nominations, while a further three have 12 nominations each
Gift this article