- The Indian ruling shaking up the global SEM market
- How trademark bidding works and why it is controversial
- The immediate impact on advertising platforms
- What Italian SMEs with active campaigns need to do now
- A Milanese agency's take on SEM compliance risk
- Outlook for 2026-2027: towards new regulations for keyword advertising
An Indian court has issued a ruling that calls into question how Google handles trademarked keywords in advertising campaigns. The decision has received immediate support from numerous founders and entrepreneurs in the tech sector. Furthermore, several legal experts have pointed out that the ruling could force platforms to review their policies on trademark bidding.
For Italian SMEs investing in Google Ads campaigns, this issue is not abstract. In fact, purchasing keywords corresponding to a competitor's name is a common practice in SEM. However, this ruling opens up scenarios of greater responsibility for both advertisers and the platforms themselves. Consequently, it is advisable to review your keyword targeting strategies with attention to compliance.
We at SHM Studio constantly monitor regulatory and advertising policy evolution to offer our SME clients a sustainable and legally risk-free SEM approach. In summary, this update requires a rapid evaluation of active campaigns, especially for those operating in competitive markets where brand bidding is a frequent lever.
The Indian ruling shaking up the global SEM market
At the end of May 2026, an Indian court issued a ruling destined to spark debate well beyond the subcontinent's borders. The decision concerns the management of trademarked keywords within advertising platforms, particularly Google Ads. According to reports from TechCrunch , the ruling immediately received the support of numerous founders and entrepreneurs in the tech sector.
Furthermore, several lawyers specializing in intellectual property have stated that the ruling could force platforms to reconsider their policies on so-called trademark bidding . This is the practice whereby an advertiser purchases a competitor's brand name as a keyword. Therefore, the issue directly affects the SEM strategies of thousands of companies worldwide.
In Italy, this practice is widespread among SMEs operating in competitive sectors. Consequently, understanding the implications of this ruling is an operational priority today, not just an academic exercise.
How trademark bidding works and why it is controversial
The trademark bidding consists of purchasing, through Google Ads or similar platforms, keywords that match another company's registered name. For example, a software company can bid on the keyword of its direct competitor. This way, their ad appears in the sponsored results when a user searches for the rival brand.
However, this practice operates in a legal and reputational gray area. In fact, Google generally allows the purchase of trademark keywords but prohibits the use of another's trademark in the ad text. Conversely, in some jurisdictions, courts have interpreted trademark holder rights more restrictively.
The issue has been debated for years in Europe as well. Even in the past, the Court of Justice of the European Union had ruled on the matter, establishing precise criteria. Despite this, practical application remains uneven across different national markets.
To learn more about the European regulatory framework on this topic, it is useful to check the official EUIPO resources , the European Union Intellectual Property Office.
The immediate impact on advertising platforms
The Indian ruling represents a significant precedent. Therefore, Google and other platforms may be called upon to review their policies globally, or at least in specific jurisdictions. This scenario has already been anticipated by some legal and advertising industry analysts.
In particular, the ruling strengthens the position of those who argue that platforms cannot limit themselves to being neutral intermediaries. Instead, they should take more direct responsibility for verifying that purchased keywords do not infringe on others' trademark rights. Therefore, Google Ads' current business model could face increasing regulatory pressure.
According to an analysis published by Harvard Business Review , the regulation of digital advertising platforms is set to intensify in the coming years. This trend is already visible in the European Digital Markets Act. Therefore, the Indian ruling fits into a context of increasing global scrutiny of the power of big tech in the advertising market.
What Italian SMEs with active campaigns need to do now
For Italian SMEs running campaigns Google Ads , the first step is an audit of the keywords currently in use. In particular, it is necessary to check if any of them correspond to competitors' registered trademarks. This check is not just a good practice: it is a concrete preventive measure.
Furthermore, it's advisable to review ad copy to ensure it doesn't contain explicit references to other brands. Although Google's policy already prohibits this, in practice, some campaigns present issues that aren't immediately obvious. Consequently, a thorough analysis by an SEM professional is strongly recommended.
Furthermore, companies that are victims of trademark bidding by competitors now have stronger arguments to challenge such practices. Therefore, trademark owners should consider systematically monitoring SERPs to identify any violations. We at SHM Studio we offer this type of analysis as part of our services for SEO and Digital marketing .
Finally, it's useful to document every instance of misuse of your brand online. This documentation can prove invaluable in case of a formal dispute with the platform or in legal proceedings.
A Milanese agency's take on SEM compliance risk
From an operational standpoint for those managing campaigns for Italian SMEs, the issue of compliance in SEM strategies is often underestimated. Many entrepreneurs consider the brand bidding an aggressive but lawful tactic. However, the international regulatory landscape is rapidly evolving in the opposite direction.
At SHM Studio, we have long adopted a consultative approach that includes assessing legal risks in strategies for google ads campaigns and LinkedIn campaigns . In fact, a technically high-performing campaign that is exposed to legal challenges is not an effective campaign. Therefore, compliance is not a bureaucratic constraint: it is an integral part of the strategy.
Similarly, keyword management within a strategy SEO organic requires attention to third-party rights. For example, using others' trademarks in website content can generate problems similar to those in paid search. For this reason, an integrated approach between SEO copywriting and legal review is increasingly necessary.
Outlook for 2026-2027: towards new regulations for keyword advertising
The Indian ruling is not an isolated incident. On the contrary, it fits into a global trend towards greater accountability for advertising platforms. According to Gartner , by 2027, digital advertising regulations will significantly impact at least 65% of global markets.
In Europe, the Digital Markets Act and the Digital Services Act are already reshaping the rules of the game. Therefore, Italian SMEs would do well not to wait for the new regulations to become operational before adapting their strategies. Instead, a proactive approach allows compliance to be transformed into a competitive advantage.
Furthermore, it's plausible that Google will revise its global trademark bidding policies in the coming months. Therefore, SEM strategies built entirely on competitor keywords could lose effectiveness due to both regulatory reasons and technical platform changes. For this reason, diversifying acquisition levers — including Organic SEO , content marketing and AI tools — is a concrete strategic priority.
In summary, those who invest today in building a solid digital presence that complies with emerging regulations will be at an advantage in the medium term. The team at web development , and marketing at SHM Studio is available for a personalized assessment. For more information, you can contact us directly or explore the Blog for further insights on the topic.
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