Amazon Can No Longer Draw Users Searching For Brikenstock
Zacks Investment Research | Jan 02, 2018 09:43PM ET
Amazom.com, Inc. (NASDAQ:AMZN) recently lost a legal battle against Brikenstock, a German sandal maker, following a ruling by a district court in Dusseldorf. According to German magazine Der Spiegel, which was quoted by Reuters, the court ordered Amazon to stop taking advantage of “typo targeting” to book Brikenstock and other variations of it as keywords through Google (NASDAQ:GOOGL) AdWords to lure online shoppers.
The ruling came after Birkenstock convinced the court that any of those variations in searches will produce results for Birkenstock shoes sold on Amazon.com. Shoppers may end up buying low quality counterfeits through Amazon, which will eventually damage the company’s reputation. This is an instance of typo-targeting ad. This helps online sellers as it helps shoppers find what they are looking for easily through Google.
Per Reuters, Birkenstock alleged that Amazon "failed to proactively prevent" the sale of counterfeit Birkenstock goods on its website. In December 2017, the company said that it will stop selling its products on Amazon in Europe. Birkenstock has already ended its relationship with Amazon in the United States in 2016.
Shares of Amazon have soared 57.8% in the past 12 months, underperforming its Zacks Investment Research
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