FTC alleges Amazon illegally made $20 billion by rigging billions of ad auctions
FTC says firm replaces actual ad-auction results “with higher prices set by Amazon.”
TL;DR
- The FTC and 22 states accuse Amazon of secretly overcharging advertisers for seven years through manipulated ad auctions.
- The lawsuit claims Amazon replaced actual auction results with higher prices set by the company, extracting over $20 billion.
- Amazon denies the allegations, stating its auction system is transparent and does not harm consumers or advertisers.
- The FTC highlights Amazon's use of a 'soft reserve price' since 2019, which inflated costs beyond the stated auction prices.
- Amazon acknowledges using reserve prices but argues they ensure ads are priced at market value and do not result in advertisers paying more than their bid.
- The FTC and states are seeking a permanent injunction, civil penalties, and restitution from Amazon.