FTC Investigates Amazon ⁤and Google Over⁣ Alleged‍ Ad Pricing‌ Misleading Practices

WASHINGTON D.C. ⁤- The Federal Trade ⁢Commission (FTC) ‌has launched a new investigation into Amazon and Google, examining ⁣whether the tech giants misled advertisers regarding the terms and pricing of advertisements on their platforms, Bloomberg reported today.

The probe⁢ centers on whether both companies adequately disclosed key details to advertisers, including auction processes and ‍pricing structures. Specifically, the FTC is requesting details about Amazon’s ad auctions⁣ and⁢ whether the company disclosed “reserve pricing”​ – minimum⁤ price floors advertisers must meet to​ secure ⁣ad placement.

Separately, the FTC is scrutinizing Google’s internal pricing processes, investigating whether the company ⁢increased ad costs without ⁣transparently communicating those changes to​ advertisers.

According ‍to sources familiar with the investigation, this new inquiry stems‌ from the FTC’s existing antitrust case against⁢ Amazon.⁣ That case alleges that Amazon’s search results within its marketplace are often‍ cluttered with irrelevant listings, hindering consumers’ ability to find desired products and increasing costs for sellers who are compelled to purchase ads to gain visibility.

The FTC’s complaint⁢ suggests that Amazon’s practices effectively ⁢force sellers to‍ buy advertisements to ensure their products appear prominently in response to​ customer ⁢searches.

This investigation underscores growing regulatory ​scrutiny of the digital advertising practices ‍of⁢ major⁤ tech companies, as the FTC seeks⁤ to ensure fair competition and clarity in the online marketplace.