Firms wrangle over Google advertising policy in US court

Google Inc was sued by two companies who claim the search-engine company breached a contract or overcharged for advertisements that accompany Internet search results.

Both lawsuits were filed this week in state court in San Jose, California. In the first case, Updated.com claims Google didn't fairly compensate it for advertising revenue. In the second, CLRB Hanson Industries LLC claims Google overcharges for ads.

The suits challenge Google's practices for selling text-based advertisements that appear alongside Internet search results.

Google the ads using an online auction, in which companies bid the amount they're willing to pay when users click on ads.

Steve Langdon, a Google spokesman, said the cases were "without merit" and that the company will defend against them "vigorously."