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  • Advertisers In Europe May Face Limits In Use Of Keywords

    An adviser to the highest European Union court recommended Thursday that some restrictions be placed on the rights of advertisers to use the names of rivals as keywords to generate sponsored links on Internet search engines.

    Upstart: Global Business

    An adviser to the highest European Union court recommended Thursday that some restrictions be placed on the rights of advertisers to use the names of rivals as keywords to generate sponsored links on Internet search engines.

    If the court goes along with the opinion, the decision could make some advertisers more cautious in their purchase of the search ads on Google, one of the fastest-growing areas of marketing in recent years, analysts said.

    “With this opinion, Google’s customers may well reconsider how extensively they want to use a competitor’s mark as an AdWord,” said Kirsten Gilbert, a partner at Marks & Clerk Solicitors in London, referring to Google’s search advertising program.

    The opinion was prepared by an advocate general to the European Court of Justice in Luxembourg, which is reviewing a lawsuit by Interflora, the flower delivery service, against the British retailer Marks & Spencer, which has a competing florist operation.

    A search under the word “Interflora” on Google’s search engine in Britain turns up sponsored advertisements for three different Web sites: Marks & Spencer’s, Asda’s and Interflora’s. Interflora argues that this misleads consumers.

    The lawsuit is the latest in a series of cases in Europe in which the parameters of search engine advertising, which generates more than $20 billion a year for Google, are being defined.

    Read More:

    http://www.nytimes.com/2011/03/25/technology/25iht-keyword25.html?hpw

    Upstart: Business and Management for 20-40 Year Old Professionals

    Filed Under: Global Business

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