FTC Launches New Probe into Amazon and Google Advertising Practices
The Federal Trade Commission (FTC) has initiated a new investigation into the advertising practices of Amazon and Google, focusing on whether these companies adequately disclosed the terms and pricing for ads. The probe, reported by Bloomberg, specifically examines Amazon’s auction processes and potential failure to disclose reserve pricing for search ads, as well as Google’s internal pricing practices and alleged undisclosed cost increases for advertisers.
According to sources, the FTC’s latest investigation emerged from its earlier antitrust case. In that complaint, the agency alleges that Amazon litters its marketplace with irrelevant results for search queries, making it harder for shoppers to find what they are looking for and more expensive for sellers to use the platform. The practice effectively forces sellers to buy ads to make their product appear in response to consumer searches.
The investigation into Google’s advertising practices includes scrutiny of its internal pricing process and whether it increased the cost of ads in ways that were not disclosed to advertisers. These inquiries aim to determine if the companies engaged in deceptive practices that may harm competition and consumer interests. The FTC has not yet announced any specific findings but has requested detailed information from both Amazon and Google to assess their compliance with advertising regulations.
Industry analysts suggest that the probe could have significant implications for the digital advertising market, potentially leading to regulatory changes that impact how tech giants operate. The outcome of this investigation may influence future policies and practices in online advertising, affecting both advertisers and consumers.
As the FTC continues its probe, stakeholders in the tech and advertising sectors are closely monitoring developments, with many anticipating potential regulatory actions that could reshape the digital advertising landscape. The investigation underscores the growing regulatory scrutiny of major tech companies and their advertising practices in the United States.