Google has a way of knowing. They can ask for documentation on who their customers are and what markets they operate in, and do some due diligence. Just like they have ways of knowing whether the ads they run are for blatant scams.
I'm not saying Google doesn't know if a company is in a particular market, I'm saying that a) Google doesn't know what market I'm searching for something from and b) even if they know both from context, it puts them in some awkward positions.
e.g. Vice Media has a trademark on "motherboard" that covers the tech news blog website service.
Is it now impossible for Asus to place an ad for the official Asus motherboard blog on the search term "motherboard"?
Is it legal to advertise for "motherboard" for any good or service other than a tech news blog website?
Is it now illegal to advertise a website featuring in-depth motherboard reviews using the term "motherboard"?
If I search for "motherboard website", what is Google allowed to show me for ads, given they don't know if I'm looking for the Vice website, or motherboard reviews, or the Asus homepage?
If a plain search for "motherboard" results in Vice's website not being in the top results, is Vice allowed to advertise on their own trademark to put it above other results? (Either above organic results, or above paid results for motherboard manufacturers, depending on whether you're allowing the latter.)
I'm not saying Google doesn't know if a company is in a particular market, I'm saying that a) Google doesn't know what market I'm searching for something from and b) even if they know both from context, it puts them in some awkward positions.
e.g. Vice Media has a trademark on "motherboard" that covers the tech news blog website service.
Is it now impossible for Asus to place an ad for the official Asus motherboard blog on the search term "motherboard"?
Is it legal to advertise for "motherboard" for any good or service other than a tech news blog website?
Is it now illegal to advertise a website featuring in-depth motherboard reviews using the term "motherboard"?
If I search for "motherboard website", what is Google allowed to show me for ads, given they don't know if I'm looking for the Vice website, or motherboard reviews, or the Asus homepage?
If a plain search for "motherboard" results in Vice's website not being in the top results, is Vice allowed to advertise on their own trademark to put it above other results? (Either above organic results, or above paid results for motherboard manufacturers, depending on whether you're allowing the latter.)