Amazon sued by FTC for allegedly manipulating ad auctions

The United States Federal Trade Commission (FTC) and 22 state attorneys general have filed a lawsuit against Amazon in a Seattle federal court. The complaint alleges that Amazon secretly manipulated advertising auction results to favor higher prices set by the company, generating an estimated $20 billion in additional revenue since 2019.

According to the filing, Amazon systematically overcharged approximately 1.2 million advertisers, including over 500,000 small and medium-sized businesses. This manipulation specifically targeted sponsored listings that increase product visibility in search results. The FTC argues that these inflated advertising costs reduce seller profit margins and ultimately lead to higher prices for consumers.

Advertising revenue accounted for $68.6 billion of Amazon's total in 2025, positioning the company as the world's third-largest digital advertising seller behind Meta and Google.