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SYDNEY - Australia's competition regulator agreed to only target parent firm Google Inc, and not its Australian and Irish arms, in court action over alleged sponsored advertising links it says are misleading.
The Australian Competition and Consumer Commission (ACCC) said it had told a Federal Court in Sydney it would amend its action after Google Inc confirmed any judgement against it would apply to its subsidiaries.
"Google Inc has told us it is responsible for everything," said ACCC spokeswoman Lin Enright.
"So we agreed with Google Inc that if there were any injunctions or declarations made against Google Inc they would have to put them into effect in Australia," Enright said.
"So there was no need to include these subsidiary companies on the statement of claim."
The watchdog says Google has not done enough to distinguish between sponsored advertising links and the search links that result when customers type keywords into Google's web search system, which it asserts are deceptive.
The ACCC will present its amended action to the court on October 25 and a new directions hearing will be held on November 16.
Google says it will vigorously fight the allegations.
- REUTERS
