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

The variety of winners demonstrates that the UPC is now a core benchmark rather than an experimental consideration, while junior lawyers are becoming more deeply involved in key work
The Indian government announcing a fee waiver for sports-related IP registrations, and the US adding the EU to its IP 'watch list' were also among major developments
Sources say the judge could return to a disputes or mediation-focussed role, though others have questioned whether the Texas court will remain a litigation hotspot in his absence
Sheppard, which has hired 14 IP partners in the last 12 months, has cited client demand for expert counsel in SEP, ITC, and district court disputes
Tingxi Huo joins our ‘Five minutes with’ series to discuss boosting the value of clients’ IP and the importance of reflection
Hefty legal teams assembled for a three-day hearing in what was the court’s first foray into SEPs since Unwired Planet v Huawei
IP firm's new base will be located inside the tallest office space in the UK's ‘second city’
Practitioners at four firms across Asia and Europe share the do’s and don’ts of mindful networking ahead of the INTA Annual Meeting
Brand Action explains why the IP community can be a force for good in the world as thousands of professionals prepare to head to London for INTA’s Annual Meeting
The firm, which has also hired a senior trademark leader to lead operations in the region, believes greater China to be one of the most important IP jurisdictions
Gift this article