Google NZ was sued for defamation. The lawsuit was dismissed on summary judgment, because it was decided that the Google NZ entity was not carrying on business in New Zealand and had no control over the search engine. The court left open the question of whether Google is responsible for defamatory material that it produces from its search engine.
See NZ Court Decision (A v. Google New Zealand Ltd) and comment.
A blog relating to Internet legal issues by Professor John Swinson, University of Queensland
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This website has some useful links and references: http://www.epiphanysolutions.co.uk/article-index/rights-and-laws-of-the-internet/

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