BillyS - 7:38 pm on Aug 9, 2007 (gmt 0)

I think this sentence is key:

Your actual CPC will continue to be determined by the auction, but subject to a minimum price for top spots.

To be in a top spot (above the results) you need quality and price. Since price is determined by auction, you might not get enough boost from price to break through the top ad threshold. Sounds like in the future, if you bid is high enough to push you through that threshold, then Google will put you in that top spot.

However, the way I read the above sentence, you will be charged the lower of the price that helps you break through the threshold. That would be your bid or a the auction price (whatever price gives you enough boost for that top spot).

Advertisers could be in for a surprise if they put in VERY high bids in the hopes of staying ahead of bids.