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Companies from India ranking ahead of me with false locations

I do web design and I try to rank local for the surrounding cities. But I'm finding that a lot of companies from countries like India and such have acquired Google Business addresses in cities near me through apartments or co-working spaces. And they create pages that target the cities. A lot of them have learned SEO.

It's really difficult to compete with, because these guys work for 1/5th of what people in North America work for. And they give the impression that they're local when they're not. The people hiring them definitely think they're dealing with someone local.

Does Google do anything to penalize this? It's not possible for me to build $300 websites and pay $1800 in rent. Yet many of these people are ranking above me in my local area. And I know they're not from here.

Most these listings Google addresses are located in shady apartment buildings. I don't understand how they got verified on Google when I work from home and have to hide my address because it's not a store front business. It's like they pay someone to use their address. I'm positive they also buy Google Reviews, since many of the reviews are written in poor english and the dates are too close together.

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