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FTC Probes Amazon and Google Over Ad Auction Pricing and Disclosures

The inquiry centers on whether undisclosed auction tactics inflated advertiser costs.

Overview

  • The FTC’s consumer protection unit is examining if the companies misled advertisers about ad terms and pricing for search and sponsored listings, according to people familiar with the matter.
  • Investigators are seeking details on Amazon’s real-time ad auctions, including whether it used reserve prices for some search ads without clear disclosure.
  • The review of Google focuses on internal pricing changes that may have raised advertiser costs without notice.
  • The investigations are ongoing, the FTC and Google declined to comment, and Amazon did not respond to requests for comment.
  • The new scrutiny follows antitrust cases that found Google holds illegal monopolies in parts of search and ad tech and comes as Amazon’s advertising business generated about $56 billion last year.