Well, as far as the Australian Consumer and Competition Commission is concerned, anyway. They are suing Google for "misleading consumers".
http://www.news.com.au/story/0,23599,22393393-2,00.html
Quote:
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GOOGLE has been selling off the top rankings on its search engine results to commercial partners, rather than sorting them by relevance as it claims to, a Sydney court has heard.
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They're talking about the #1 Adwords listing. The consumer watchdog alleges Google does not do enough to differentiate "organic" search results from sponsored links.
Would have thought it was pretty clear myself....