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Google’s Matt Cutts announced that Google is working on a search ranking penalty for sites that are “over-optimized” or “overly SEO’ed.”

Matt announced this during a panel Search Engine Land’s Editor-In-Chief, Danny Sullivan and Microsoft’s Senior Product Marketing Manager of Bing at SXSW named Dear Google & Bing: Help Me Rank Better!. The audio for the session has been published where I learned that Google has been working on a new penalty that targets site’s that overly optimize for search engines for the past few months.