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[BUSINESS] · United States · 100 sources

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Amazon sued by FTC and 22 states over alleged ad auction manipulation

The U.S. Federal Trade Commission (FTC) and a bipartisan group of 22 state attorneys general have filed a lawsuit against Amazon, alleging the company secretly and systematically manipulated its online advertising auctions. The complaint, filed in a Washington state federal court, claims that Amazon used a 'soft reserve' mechanism and artificial auction participants to inflate the minimum prices paid by advertisers.

Regulators allege that since 2018, these practices have deceived more than 1.2 million advertisers, including over 500,000 small and medium-sized businesses. The lawsuit suggests that these undisclosed surcharges may have generated more than $20 billion in additional revenue for Amazon. Furthermore, officials stated that these increased advertising costs were likely passed on to consumers through higher prices for goods on the platform.

Amazon has strongly denied the allegations, calling the lawsuit 'misguided.' The company maintains that its advertising policies aim to show relevant ads and that average winning bid prices for sponsored products actually decreased by 50% between 2019 and 2025. Following the news, Amazon's shares saw a decline of approximately 2.5%.

Entities

Alphabet · Amazon · Andrew Ferguson · Andrew N. Ferguson · Federal Trade Commission · Jeff Jackson · Letitia James · Meta · Seattle · Washington

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Sources

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Amazon Aktie: Werbegeschäft unter Beschuss [www.kapitalmarktexperten.de]
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