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

News of Dolby suing Snap over AV1 and HEVC patents and SCOTUS offering guidance on the liability of internet service providers were also among the top talking points
Arrival of Caitlin Heard will bolster the soon-to-be-created Ashurst Perkins Coie’s IP presence in the capital
AI, cybersecurity and data practice group will provide clients with legal guidance around AI alongside a 'deep technical foundation’ in IP
Lawyers at Vondst and Biopatents say a ruling concerning the protected status of trade secrets could see the UPC flooded with requests to prevent access to confidential information
Sharad Vadehra of Kan & Krishme discusses why older IP firms still have an edge over up-and-coming boutiques and how the firm is using AI to provide quick and cost-effective service
Lawyers at Appleyard Lees share how they picked apart a plant breeder’s infringement claims concerning the ‘Tango’ mandarin
A further decision on long-arm status, and a new hire for Pentarc in Germany from Taylor Wessing were also among top developments
The US decision marks a rare grant of a request under the Uniform Fraudulent Transfer Act in a patent case
Stobbs has applied to strike out a contempt of court application filed against the firm and two of its lawyers
With trademark volumes surging, trademark teams need to think beyond traditional clearance searches, towards a continuous, intelligence-led workflow, says Meghan Medeiros of Corsearch
Gift this article