India Ruling on Google Ads and Trademark Keywords: What Changes

The Indian ruling that reopened an old file

At the end of May 2026, an Indian court issued a ruling that immediately sparked debate. The decision concerns whether advertisers can use keywords matching other companies' registered trademarks in Google Ads campaigns. According to TechCrunch, several founders seized the moment to renew their criticism of Google's advertising model. Legal experts have also noted that the ruling could push platforms to reconsider their internal rules.

The issue is not new. However, this ruling comes at a time when the debate on digital competition is especially heated. In Europe, the Digital Markets Act is already in force. As a result, any signal from non-European jurisdictions carries more weight than it used to.

How trademark keywords are handled on Google today

Google generally allows the use of keywords matching registered trademarks. However, it places some restrictions on using those trademarks in ad text. In practice, a company can bid on keywords such as a competitor's name. But it cannot, with some exceptions, put that name in the ad's headline or description.

This distinction is subtle but important. Many SMEs don't know it in depth. As a result, they expose themselves to two opposite risks: either they avoid competitive keywords altogether out of excess caution, or they use them improperly. Both approaches create inefficiencies in Google Ads campaigns.

Google's current policy is described in its official help center on advertising policies. It's worth checking it regularly, as it gets updated.

Why founders back the ruling

Founders' support for the Indian ruling is no coincidence. For years, many entrepreneurs, especially at startups and scale-ups, have complained that the trademark keyword system favors bigger brands. These brands can afford to bid aggressively on their own names. In doing so, they raise the cost per click even for those who don't use their trademark in the ad text.

On top of that, trademark owners can ask Google to remove competing ads that use their mark. This mechanism creates imbalances. In particular, it penalizes SMEs trying to establish themselves in categories dominated by established players. That is why the Indian ruling is read as a sign of possible rebalancing.

According to Gartner's analysis of paid search, competition on brand keywords accounts for a growing share of digital ad spend. So 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 effect. However, it is a trend signal worth watching. In particular, it could foreshadow regulatory developments in other jurisdictions, including the European Union.

There are three operational areas to think about right away. First, review your active keyword lists: check whether they include keywords matching third-party trademarks and assess whether they're legitimate. Next, audit your ads: make sure the text doesn't reference registered trademarks without authorization. Finally, assess your legal risk: involve an intellectual property consultant if needed.

At SHM Studio, we support clients in building digital marketing campaigns that are both effective and compliant with current policies. Compliance doesn't hold performance back: it's what makes performance sustainable.

The regulatory work still in progress

The Indian ruling is part of a fast-evolving global regulatory landscape. In Europe, the Digital Markets Act imposes transparency and non-discrimination obligations on gatekeepers, Google among them. Similarly, several national antitrust authorities are examining platforms' advertising practices.

An analysis by Harvard Business Review on the new rules of digital advertising stresses that companies should prepare for scenarios of tighter regulation. That's why managing trademark keywords more rigorously today is not just legal prudence. It's also a strategic choice to avoid operational disruption down the road.

For SMEs, this means putting clear internal processes in place. For example, defining who approves keyword lists, who checks ad compliance and how often. These processes fit naturally with a structured SEO strategy, which reduces your reliance on paid search for traffic by building organic visibility.

What to do now: a three-level approach

The situation calls for a structured approach across three levels.

• Operational level: Run an audit of your active Google Ads campaigns. Identify all keywords containing brand names or registered trademarks. Assess the risk case by case, distinguishing between generic keywords and direct brand keywords.
• Strategic level: Reduce your dependence on competitive keywords by developing organic content. A solid SEO copywriting strategy lets you cover relevant queries without exposing yourself to paid-search disputes. Investing in LinkedIn campaigns for B2B also lets you reach decision makers in less competitive environments.
• Governance level: Set up an internal protocol for managing trademark keywords. This includes documenting your decisions, regularly checking Google's policies and involving the legal team in doubtful cases.

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

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

It's reasonable to expect the Indian ruling to draw attention internationally. Some platforms might get ahead of possible regulatory obligations by updating their policies. Google in particular has shown in the past that it adapts its trademark keyword rules in response to legal pressure in specific jurisdictions.

For Italian SMEs, the main risk is not an immediate penalty. It's rather that SEM strategies built on assumptions that could change become obsolete. So if you invest today in artificial intelligence applied to marketing and in automated monitoring tools, you'll be able to adapt faster.

In short, the Indian ruling is a useful reminder: paid search rules are not set in stone. SMEs that treat compliance as a structural part of their digital strategy, and not as an occasional box to tick, are best placed to navigate these changes. To explore what it means for your specific industry, contact the SHM Studio team or browse the related articles on the blog.