IANAL but it appears to me that Google lost because the court has taken the position that Google does more than publish the advertisements because Google uses algorithms to match advertisements with searches. In the original ruling Google won with the position that they were like a newspaper, simply taking someone else's copy and publishing it on their site.
It is a very interesting case and I am not sure where I personally stand on it.
Either way I'm sure we will hear more from Google on the matter, they still have an avenue for appeal. They can apply to the High Court which may or may not accept to hear their appeal, I am not sure on what grounds this is decided however.