Nithin Kamath, co-founder of Zerodha, has raised concerns over what he calls the growing dominance of app stores and search platforms, criticising the practice of brand keyword bidding that forces companies to pay for visibility even when users search for them directly.
In a strongly worded post on X, Kamath pointed out that a search for “Zerodha” on platforms like Google or app marketplaces often shows advertisements from competitors at the top, effectively pushing the actual brand below paid listings.
Kamath highlighted the irony of the system, where companies must bid on their own brand names just to secure top placement in search results. “The only way for us to show up first is to bid on our own brand keyword,” he said, adding that failing to do so allows competitors to capture valuable user attention.
The issue is compounded by the increasing density of ads. According to Kamath, sponsored listings now appear both above and below organic search results, making it harder for users to find the official brand listing without scrolling.
This trend, he suggested, reflects the broader direction in which digital platforms are heading, towards greater monetisation of visibility.
Kamath's critique goes beyond advertising mechanics to question the role of large platforms as intermediaries. Despite frequent discussions around “disintermediation” in the digital economy, he argued that app stores and search engines have become “some of the most powerful and profitable gatekeepers in history.”
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These platforms, he said, monetise both sides of the ecosystem, charging commissions on transactions while also earning from advertising spend. This dual revenue model places businesses in a position where they must continuously spend to maintain visibility and access to users.
“The only winners here are the app stores,” Kamath noted, adding that such costs ultimately get passed on to customers through higher prices.
While large companies may be able to absorb rising marketing expenses, Kamath warned that the system disproportionately impacts startups and smaller businesses. Without the budget to compete in keyword auctions, these firms risk losing visibility even when users actively search for them.
This could create barriers to entry and limit competition, reinforcing the dominance of well-funded players who can afford sustained ad spending.
The phenomenon also ties into the concept of platform “enshittification,” a term used to describe how digital platforms increasingly extract value from users and businesses over time. Kamath suggested that the growing prominence of ads and reduced organic reach may be an early sign of this trajectory.
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