Google reports that "the European court upheld and confirmed a decision by a previous court that "bidding on trademarked keywords" in search engines doesn't infringe on European trademark law." This specific case was between Portakabin, a cabin maker and a competitor, Primakabin. Primakabin was using Portakabin to bid on ads on Google and other search engines. The court ruled that Primakabin wasn't in violation of European trademark law for bidding on a trademarked name.
This's similar to the EU ruling on Luis Vuitton keyword case where Google won in court.