U.S. sues Amazon over its advertising prices
The FTC and 22 state attorneys general have filed a lawsuit against Amazon, alleging the company manipulated its advertising auction process to overcharge sellers. Amazon denies the claims, arguing that the FTC misrepresented its auction mechanics and that its advertising services have improved over time.
Why it matters
This represents a significant escalation in federal antitrust efforts to regulate Amazon's dominant position in the e-commerce and advertising markets.
Federal regulators sued Amazon on Monday, alleging the company has pocketed tens of billions of dollars by "secretly and systemically overcharging" advertisers on its platform.
Business Amazon sellers say they made a good living — until Amazon figured it out A bipartisan group of 22 state attorneys general joined the Federal Trade Commission's lawsuit, which marks the third major lawsuit against Amazon by federal regulators.
The latest complaint alleges that Amazon secretly pushed up the prices that 1.2 million brands and sellers pay to place ads on Amazon's website and mobile app by manipulating the bidding process. Amazon, which has grown into one of the world's largest advertising platforms, sells its ads through special auctions, which are fairly common in the industry.
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