Will Google natural or organic search get even bigger

11 Apr, 2008 | Search Engine Optimisation

The Australian Competition and Consumer Commission (ACCC) alleges Trading Post Australia, Google Ireland, Google Australia and Google Inc. were misleading in the search engine’s “sponsored links” section.

The ACCC said that in 2005, sponsored links titled “Kloster Ford” and “Charlestown Toyota” allegedly appeared on Google, but the links allegedly directed users to the Trading Post website.

Both dealerships compete with the Trading Post.

The ACCC said by publishing the links, Google allegedly engaged in “misleading and deceptive conduct”.

Google also continues to allegedly fail to “adequately distinguish sponsored links from ‘organic’ search results”, according to an ACCC statement.

Google Australia spokesperson Rob Shilkin said the action affects all search engines.

“Google Australia believes that these claims are without merit and we will defend against them vigorously,” Mr Shilkin said.

“They represent an attack on all search engines and the Australian businesses, large and small, who use them to connect with customers throughout the world.”

Internet Industry Association chief executive Peter Coroneos said the move comes after a long-standing “positive” relationship with the regulator.

“It's very unfortunate that the ACCC has decided to pursue a litigious strategy against one participant, rather than consulting more broadly on an issue that affects the entire industry,” Mr Coroneos said.

ACCC chairman Graeme Samuel declined to comment.

In 2002, the US Fair Trade Commission (FTC) made the recommendation that search engines should have a “clearer disclosure of the use of paid inclusion” after a year-long investigation into sponsored links.

The FTC did not take any formal action over the use of the sponsored links.

The ACCC said this case was different to the US investigation.

“The ACCC understands that it is the first regulatory body to seek legal clarification of Google’s conduct from a trade practices perspective,” the watchdog’s statement said.

“This is the first action of its type globally.”

The matter will come before the Federal Court in Sydney on August 21.

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