Re: the title of this thread
Google has no say, they just rank what's there, and so of course it's "allowed".
Re: 50 sites broken down by city but all offering one service by one company
Doomed to failure in a post-Panda internet, not 100% failure but when the sites are viewed by a human they will start to look more and more like the network they are. Sub-domains would have been better with a core set of pages shared, imo.