FTC Probes Amazon and Google Over Ad-Auction Pricing Transparency
The U.S. Federal Trade Commission’s consumer protection unit is investigating whether Amazon and Google misled advertisers about pricing and terms in their ad-auction systems. The inquiry centers on Amazon’s use of “reserve pricing” (a minimum price floor for some sponsored ads) and whether Google used internal pricing processes that effectively increased ad costs without adequate disclosure to advertisers.
Key points
- Amazon: The FTC is examining whether Amazon disclosed reserve pricing for certain sponsored listings and how that affected advertisers’ bids.
- Google: Investigators are probing whether Google’s internal pricing practices led to undisclosed cost increases for advertisers in its near-instant search auctions.
- Wider context: The probe adds to broader federal scrutiny of big tech ad practices — the DOJ recently found Google to hold monopoly power in parts of ad tech, and the FTC has listed big tech as a top priority.
Coverage and sources (no RSS links):
This investigation could have implications for transparency and pricing across digital ad markets. What do you think — are ad auctions transparent enough, or do big platforms need stricter disclosure rules? Leave a comment below.