Google Australia is believed to be falling in line with the search engine's global policy of turning a blind eye to firms who bid on the Trademarked brand names of rivals.
The shift will put the onus firmly on companies to take legal action of their own against any competitor who they believe is attempting to exploit their brand name to attract web traffic and sales.
Previously, Google Australia is thought to have attempted to clamp down on the practice.
Travel firms said they would vigorously pursue legal action if rivals bid on their brand names.
A Flight Centre spokesman said: "Companies invest heavily in their trademarks and branding. Naturally, they protect this investment.
"Legal action may now be the only remedy that is available to companies and we would be prepared to take action if required."
Webjet said it would take "violent action" against abuse of its brand.
"It is likely to be a free for all and we will be vigilant in protecting our brand," executive chairman David Clarke said.
The change in Google Australia policy follows several court cases which saw the Australian Competition and Consumer Commission (ACCC) take action against the search engine giant, alleging misleading and deceptive conduct.
The consumer watchdog, in 2007, said that Google and Telstra's advertising business, The Trading Post flouted the 2005 Trade Practices Act when the classified business used the name of two unrelated car dealerships in paid or sponsored ads.
Google was cleared, but the ruling was overturned on appeal in favour of the ACCC. A further appeal by Google to the High Court went in its favour.
Google has long argued that it cannot be held responsible for ads which advertisers create for its search engine.
Google could not be reached for comment.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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