https://www.infocubic.co.jp/en/blog/website-design/how-japan...
Google Soap. Parler French School. Stripe Flags. Square Foods. etc.
However, what you described is not a conflict search “Windows” and you get www.microsoft.com etc, but search “Storm Windows” and no search engine is going to show you www.microsoft.com/... as the top entry.
It is however a reason not to choose single word trademarks.
So in practice, I think differentiating the area of trademark is something that could be done.
At least with Ads you need to attribute a competitor's trademark to your competitor.
Matt’s apple orchard may or may not be trademarked. They may be registered in their state, but not likely nationally.
The money is in the big marks. Matt is not going to bid against Apple. Matt might bid against his neighbor on generic terms or on business name. His neighbor may bid on generic terms but not on his business name. That’d be tawdry.
So who can bid on the keyword "Apple"? Does Apple Computer get exclusivity? What about Apple Cosmetics? Apple Travel Agency? Apple Corps? Imagine telling Greg Apple of Apple Plumbing that he can't advertise using his own last name!
Even if you let everyone with a relevant trademark bid on keywords, you're still gonna have problems because so many trademarks are normal words. Should a random orchard that hasn't obtained a trademark containing the word "Apple" be able to place apple ads?