US alleges Amazon manipulated advertising prices in $20 billion scheme

The Federal Trade Commission has filed legal action against Amazon, accusing the e-commerce and cloud computing company of rigging prices within its digital advertising division. According to the complaint, the alleged price manipulation affected approximately $20 billion worth of ad transactions over an extended period.

The lawsuit represents an escalation in regulatory scrutiny of Amazon's advertising operations, which have become an increasingly significant revenue stream for the Seattle-based company. The FTC contends that Amazon's practices harmed both advertisers and consumers by distorting market competition in the digital advertising sector.

Amazon has disputed the allegations, arguing that the FTC has fundamentally misunderstood the mechanics of its advertising marketplace. The company maintains that its pricing mechanisms operate competitively and that advertisers retain substantial choice in how they allocate their spending across available platforms.

The case joins a series of antitrust investigations and lawsuits targeting major technology companies globally. Regulators in the United States and internationally have increasingly challenged the market dominance of large digital platforms, particularly regarding their control over advertising networks and marketplace operations.

The outcome of the litigation could have significant implications for how Amazon structures its advertising business and potentially influence regulatory approaches toward similar practices across the technology sector.