Google in court over paid-for search results

Google is being taken to court for allegedly misleading web users by not identifying sponsored links in its search results.

Australia's competition watchdog is seeking an injunction to stop the world's most popular search engine displaying results that do not "expressly distinguish" advertisements.

Advertisers are clearly identified at the top of each page in a shaded box and in a separated right-hand column, but those same companies often also feature in the main search results where they are not identified as having paid for the privilege.

The Australian Competition and Consumer Commission (ACCC) said this constitutes an unfair trading practice and is seeking declarations from the Federal Court that Google has breached trading practice laws.

"The ACCC is alleging that Google, by failing to adequately distinguish sponsored links from 'organic' search results, continues to engage in misleading and deceptive conduct," the regulator said.

"Although the US anti-trust authority, the Federal Trade Commission, has examined similar issues, the ACCC understands that it is the first regulatory body to seek legal clarification of Google's conduct from a trade practices perspective."

The internet search giant has said the claims are "without meritî and vowed to "defend against them vigorously".

Money made from the sponsored links have helped propel Google's stock market value to £83billion since it was started by two university students.