The Australian Competition and Consumer Commission announced Thursday it has lodged an appeal against a recent Federal Court decision that cleared Google of online search and online advertisements malpractices.

ACCC alleged Google engaged in misleading or deceptive conduct by publishing advertisements on Google's search results page that took a user to an advertisement Web site not directly related to the initial given results or to a business not sponsored, affiliated or associated with the advertiser.

Justice Nicholas, who handled the case, said that although a number of the advertisements were misleading or deceptive, he ruled that Google purposely did not make those representations, but instead merely communicated representations made by the advertiser.

Nicholas ruled that Google had not breached the Trade Practices Act.

"The role of search engine providers as publishers of paid content needs to be closely examined in the online age. Specifically, it is important that they are held directly accountable for misleading or deceptive paid search results when they have been closely engaged in presenting and publishing those results," ACCC Chairman Rod Sims said.

Estimates of online search advertising in Australia through search engines such as Google are currently worth $830 million per year. Google is the dominant search engine provider and player in the Australian market. Online advertising grew around 20 per cent in the last financial year.

"It is very important that the law in this area is clarified and fully understood," Sims said.