US sues Amazon over alleged $20bn advertising pricing scheme

The Federal Trade Commission has filed legal action against Amazon, alleging the e-commerce giant rigged pricing mechanisms across approximately $20 billion worth of advertising transactions. The lawsuit represents the latest regulatory challenge to Amazon's business practices, focusing on how the company prices advertisements displayed to shoppers on its platform.

According to the FTC's complaint, Amazon's pricing practices allegedly disadvantaged merchants and advertisers while inflating costs across the digital advertising marketplace. The agency contends that Amazon leveraged its dominant market position to manipulate ad auction mechanics and pricing structures in ways that benefited the company at the expense of competitors and consumers.

Amazon has rejected the allegations, asserting that the FTC fundamentally misunderstands the dynamics of its advertising market. The company maintains that its advertising business operates competitively and that prices are determined by market forces and advertiser demand rather than algorithmic manipulation.

The lawsuit adds to mounting antitrust scrutiny of Amazon's operations globally. Regulators across multiple jurisdictions have raised concerns about whether the company improperly leverages data and market dominance across its retail, advertising, and cloud computing divisions.