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Think twice before ganging up on Google

03 September 2008

Google prompted angry response when it allowed businesses to sponsor keyword search terms consisting of third-party trade marks via its online advertising facility AdWords.

A number of businesses are finding that their core trade or brand names are being bought up by unconnected third-parties, including their competitors.

However, as a result of a recent High Court judgment, it seems that there is little that trade mark owners can do from a legal perspective to prevent search engines like Google from engaging in such activity in the UK for more details see Brands’ frosty reception for keyword search policy change.

As a consequence, industry sources tell us that businesses in some sections of the market are taking matters into their own hands by agreeing with competitors not to enter a bidding war for keywords consisting of each others’ trade or brand names.

But those considering this line of retaliation should proceed with caution, as the competition authorities could well see such collective action as an illegal agreement which distorts competition – both in the online advertising market, and the market in which the competitors are active.

The sanctions that business face for such anti-competitive behaviour can be very serious.

We recommend that business take specialist competition advice before entering into any collective arrangement of this sort.

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Peter Andrews

Partner
T: 08700 86 5035
I: +44 (0)115 906 5035
E: peter.andrews@shoosmiths.co.uk