Google ... is being sued by a London businessman in a landmark legal action that could hold the US-based company liable for the publication of inaccurate, malicious or damaging material on the internet.... [T]he search engine directed users to web pages that the businessman claims contained "deeply offensive and commercially damaging" material about his enterprises.
I don't know whether British libel law, which is famously much more pro-plaintiff than American law, would allow such a lawsuit. But if it does, that would spell serious trouble for any search engine that is subject to jurisdiction in Britain (for instance, because it has an office or assets there) -- and thus for users of any such search engine.
Like many internet-related legal issues, it depends on whether you take the internet based view, or the non-internet perspective. (Example: a piece of child pornography is sent from San Francisco, via a server in Virginia, to Los Angeles. Is there interstate commerce?)
Cf. 48 Stan. L. Rev. 1367, 12 U. Balt. Intell. Prop. L.J. 75, and most importantly this article by none other than Orin Kerr: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=310020
The problem that is underneath this action is that:
1) This guy makes his living from the Internet. I'd hope that he loses his license to act as a registrar over this action.
2) Everytime he points out a link to Google, they delist the material, which is false.
3) The material (accusations about 9/11 related misbehavior) keeps coming back up, which means that it keeps showing up again.
What he wants is for Google to pre-emptively blacklist/block negative information before he points it out to them again.
What they could do is block him as a search term of any kind -- which would have the effect, noted above, of hampering his business somewhat, the more if others block his name as well.
Technically, Google is not on notice, since it blocks stuff as he points it out. He wants them to just, on their own nickle, find and block things without his pointing them out. I suspect that this action will cause him more trouble than the defamation ever did.
Basically, what he wants could easily be adapted to full scale censorship of the internet, which is what he is really asking for, since once he can get what he wants, the engine for such a thing would readily be used to censor other things as well.
On the other hand, the suit is in the "serious bluff" stage.
Should be itneresting what happens next.
As I see it, it all turns on whether Google actually published anything. Under English law (yes: English, not British) intent is not required for defamation; you can defame someone by accident, you can even defame someone without knowing they exist. (There is an amazing case about someone who wrote a purportedly fictional story and a real person sued and won. When I get into the office, I'll post the details if you like.)
I can't remember whether newspaper stores can be sued for defamation, I'd have to look that up, but I assume that Google will end up winning. And yes, under just about every legal system outside the US, the loser pays legal fees. (Or at least a standardised approximation.)