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Hi MatterSolutions, What you want to avoid doing here is claiming the second listing, because it's a violation to have two claimed listings. Instead, I would recommend going through the troubleshooter as this opens a line of communication with Google about the problem. Here's the link (click the contact button on this page): https://support.google.com/places/#topic=1656871 I realized the guidelines Chris has correctly quoted state otherwise, but my own choice would be to use the troubleshooter instead.

I haven't seen it anywhere naturally, but I agree that it will make it even more less likely for users to go to page 2 (out of those that did in the first place, that is). Since the page numbers are listed under the ads and not directly under the last organic result, those that are able to distinguish between paid and organic are likely to stop scrolling once they hit the ads. On the flip side, users would no longer have the ads on the side of the page which cuts out clutter while they are viewing organic results.