bakedjake - 3:42 pm on Sep 23, 2010 (gmt 0)
I think the issue is that many of those 'rogue pharmacies' have figured out ways to skirt Google's advertising guidelines and automated measures - so they're suing for breach of contract likely to deter others from doing the same.
Of course if they can pass information up to the relevant governmental institutions I'm sure they wouldn't mind the feds doing some work for them, too. :) Civil litigation may lead to criminal prosecution, serving as a further deterrent, and advertising you're prosecuting civil issues will get the attention of the authorities.
I think the point is that Google does not want to be seen as aiding and abetting illegal activity, and this makes it clear which side of the fence they're on. It's one thing to say "they're doing it even though we disallow it and try to stop them but still collect their money in some circumstances where we're ignorant of what's going on", it's another entirely to say "we disallow it, and when we find out about it we sue them".