Google wins AdWords case in Australia High Court

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

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

Loke Khoon Tan and Stephanie Yip at Dentons explain what brand owners need to know ahead of January 1 2027, when updates to China’s Trade Mark Law come into force
New US bills signal that firms should work with clients to ensure they are complying with potential regulatory requirements
Octavio Espejo of Becerril, Coca & Becerril explains how sweeping patent reforms reshape filing strategies, prosecution, and divisional application practice
The UK Supreme Court’s decision in Tesla v Avanci enhances the UK's attractiveness for global FRAND battles, say lawyers at Simmons & Simmons
PE-backed practices now comprise the majority of ranked firms for patent prosecution in the Netherlands, but competitors are confident about their decision to remain independent
The firm says new additions position Brown Rudnick as a market leader in tech, life sciences, and global litigation
Richard Quatrano, counsel at Olshan Frome Wolosky, shares why technology M&A buyers and sellers must verify written IP assignments, as broken ownership chains can undermine valuation, deal terms, and closing certainty
Appointment of AI and copyright expert Anna Naydonov, as well as another partner from Orrick, shows how firms can attract top litigators through leveraging the power of their existing teams
K&L Gates and Baker Botts have recruited leading patent practitioners from Wende IP and EIP, respectively, as they seek to strengthen European patent litigation capabilities
The departure of a large chunk of Spruson & Ferguson's legacy leadership could have destabilised the firm, but it's fighting back with strategic hires and promotions
Gift this article