Why was I penalized?

I have various keywords

[cyan_corp]

Hi All

Could someone please help me to uinderstand why I have been penalized the keywords I bidded for.
The situation is this:

We have an affiliate who is bidding on two of the same words as we are and apears just above us on the right.
Is it wrong to have an affiliate listing as well as your listing in the sponsored links on the right?

I have now made the keywords search specific by placing them within the [ ] and hope our listings will not clash.
Google, however, has not responded since I reacted with these measures.

Could someone pleasde shed some light on my issues.

Thanks

CYAN_CORP

[lazerzubb]

The Affiliate, should have to enter his/her's webadress, and from there redirect it to the Affiliate URL.

if you are the owner of the site, you always have first ching.
But sometimes you need to tell these things to the people who sends you the email that your ad has been rejected.

[vibgyor79]

Google *probably* sees this as adwords spamming. Now if you get hold of seven more affiliates and put your own ad there, you will have the whole page for yourself!