FTC is investigating Google and Amazon over ad practices: Reports

The U.S. Federal Trade Commission’s consumer protection unit is investigating whether Google and Amazon misled advertisers on terms and pricing for search ads, according to reports from Bloomberg and Reuters.

The outlets reported that the FTC is looking into whether Google increased the price of ads without disclosing that to advertisers.

It is also reportedly probing whether Amazon disclosed “reserve pricing” on search ads on its website, the minimum price advertisers must agree to in order to bid.

The FTC had previously sued Amazon in two separate lawsuits in 2023: First, for making it too difficult to cancel a Prime membership. Then, it accused Amazon of operating an illegal monopoly in online retail.

The reported investigations also come amid heightened scrutiny over Google’s advertising practices.

In April, a federal judge ruled that Google had illegally monopolized two ad tech product markets. A trial to determine remedies in that case begins on Sept. 22; the U.S. Department of Justice has proposed remedies that include a forced sale of Google’s ad exchange, which would break up its ad tech business.

Further, two supply-side platforms, PubMatic and OpenX, recently filed separate lawsuits against Google over alleged anticompetitive practices in digital advertising.