> It should be easy for the user to discern the factual relevance of search query results

Is it even possible to structure incentives in such way that this happens? _Without totalitarian dictatorship methods_ if possible please.

The only reason that these company mark ads at all are due to consumer protection laws about undisclosed sponsored content.

If stronger consumer protection laws are "totalitarian dictatorship methods", then no, there is no path. If we aren't allowed to have laws and regulation, only unregulated capitalism, by definition capital makes right, and so apple having more money than you means you have no recourse.

Any way to structure incentives (like "we will all agree to only buy from companies that don't act unfairly") is the same as creating an ad-hoc government regulation.

Put a sticky ad banner to the bottom instead of mixing it with the results?