FTC alleges Amazon illegally made $20 billion by rigging billions of ad auctions

Ars Technica reports that the Federal Trade Commission, together with twenty‑two states, has filed a lawsuit against Amazon, accusing the e‑commerce giant of a secret scheme that overcharged its advertisers for seven years. The complaint alleges Amazon manipulated the auction system that sets prices for Sponsored Products, Sponsored Brands and Sponsored Display ads, inflating costs for roughly 1.2 million advertising customers. The FTC says its investigation, which began in 2024, uncovered internal documents and messages showing the company replaced genuine auction results with higher prices to boost its profits, adding another chapter to the ongoing regulatory scrutiny of big‑tech platforms.

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