Indian ruling on Google Ads and trademark keywords: what changes

The Indian ruling that reopened an old case

In late May 2026, an Indian court issued a ruling that immediately sparked debate. The decision concerns the ability for advertisers to use keywords matching third-party registered trademarks in Google Ads campaigns. According to reports by TechCrunch, Furthermore, various founders have seized the opportunity to renew criticism of Google's advertising model. In addition, legal experts have observed that the ruling could push platforms to reconsider their internal policies.

The issue is not new. However, this ruling comes at a time when the debate on digital competition is particularly heated. In Europe, the Digital Markets Act is already in effect. Therefore, any signal from non-European jurisdictions carries more weight than in the past.

How trademark keyword management works on Google today

Google generally allows the use of keywords that match registered trademarks. However, it imposes certain restrictions on the use of those trademarks in ad text. In practice, a company can bid on keywords such as a competitor's name. Conversely, it cannot – with some exceptions – include that name in the ad's headline or description.

This distinction is subtle but relevant. In fact, many SMEs are not deeply aware of it. Consequently, they expose themselves to two opposing risks: either they avoid competitive keywords altogether out of excessive caution, or they use them improperly. Both approaches generate inefficiencies in Google Ads campaigns.

Google's current policy is described in its Official advertising policy support center. It's worth consulting it periodically since it's updated.

Why do the founders support the ruling

The founders' support for Indian pronunciation is not by chance. Many entrepreneurs, particularly those in startups and scale-ups, have complained for years that the trademark keyword system favors larger brands. The latter, in fact, can afford to bid aggressively on their own names. By doing so, they increase the cost per click even for those who do not use their brand in the ad copy.

In addition to this, trademark owners can request Google to remove competing ads that use their trademarks. This mechanism creates asymmetries. In particular, it penalizes SMEs trying to position themselves in categories dominated by established players. Therefore, the Indian ruling is seen as a signal of possible rebalancing.

According to analysis by Gartner on paid search, the competition for branded keywords represents a growing share of digital advertising spend. Therefore, the issue has direct economic implications, not just legal ones.

Immediate Impact on Italian SMEs' SEM Strategies

For Italian SMEs running SEM campaigns, the Indian ruling has no direct legal effects. However, it represents a trend worth monitoring. In particular, it could anticipate regulatory developments in other jurisdictions, including the European Union.

There are three operational areas to consider immediately. First, review the active keyword lists: verify if any keywords match third-party brands and assess their legitimacy. Next, check the ads: ensure the text does not contain references to registered trademarks without authorization. Finally, assess legal risk: involve an intellectual property consultant if necessary.

We of SHM Studio We assist clients in structuring campaigns digital marketing that they are effective and at the same time compliant with current policies. Compliance is not a brake on performance: it is a condition for its sustainability.

The regulatory construction site is still open

The Indian ruling comes within a rapidly evolving global regulatory framework. In Europe, the Digital Markets Act imposes transparency and non-discrimination obligations on gatekeepers, including Google. Similarly, various national antitrust authorities are examining the advertising practices of platforms.

An analysis of Harvard Business Review on the New Rules of Digital Advertising emphasizes how companies must prepare for scenarios of increased regulation. Therefore, adopting stricter trademark keyword management today is not just legal prudence. It is also a strategic choice to avoid future operational disruptions.

For SMEs, this means implementing clear internal processes. For example, defining who approves keyword lists, who verifies ad compliance, and how often. These processes naturally integrate with a SEO strategy structured, which reduces reliance on paid search for organic traffic.

What to do now: A three-tiered approach

The situation suggests a structured, three-level approach to intervention.

• Operating level Conduct an audit of active Google Ads campaigns. Identify all keywords containing brand names or registered trademarks. Evaluate the risk on a case-by-case basis, distinguishing between generic keywords and direct brand keywords.
• Strategic level: Reducing dependence on competitive keywords through organic content development. A solid strategy of SEO copywriting Allows you to monitor relevant queries without exposing yourself to disputes on paid. Furthermore, investing in LinkedIn campaign For B2B, it allows reaching decision-makers in less competitive environments.
• Governance Level: Establish an internal protocol for trademark keyword management. This includes documenting choices, periodically reviewing Google's policies, and involving the legal team for questionable cases.

These three levels are not alternatives. On the contrary, they reinforce each other. A company that acts only on an operational level without a strategic vision risks repeating the same mistakes. Therefore, the integrated approach is the most effective.

Outlook: what could change in the next 12-18 months

It is reasonable to expect that the Indian ruling will generate international attention. Some platforms may anticipate potential regulatory obligations by updating their policies. Google, in particular, has a history of adapting trademark keyword rules in response to legal pressure in specific jurisdictions.

For Italian SMEs, the main risk is not immediate sanctions. It is rather the obsolescence of SEM strategies built on assumptions that could change. Therefore, those who invest today in artificial intelligence applied to marketing and in automated monitoring tools will be able to adapt more quickly.

In summary, the Indian ruling is a useful reminder: paid search rules are not set in stone. SMEs that treat compliance as a structural element of their digital strategy—rather than an occasional task—are best positioned to navigate these changes. To delve deeper into the specific implications for your industry, you can Contact the SHM Studio team to consult the related articles on blog.