Amazon Accused of Rigging Ad Auctions for Billions
A lawsuit filed by the US Federal Trade Commission (FTC) and 22 states accuses Amazon of manipulating online auctions to set ad prices, overcharging more than a million advertising customers.
The FTC alleges that since 2019, Amazon's scheme has netted the company $20bn from advertisers. The complaint says that in 'second price' auctions, Amazon secretly charges its own winning bid close to 80% of the time, rather than one cent more than the next highest bidder.
Amazon disputes the allegations, stating that 'consumers are suffering, have suffered, and will continue to suffer substantial injury as a result.' However, the company claims that advertisers adjust bids based on real-world performance, not auction mechanics. It adds that average winning bids fell 50% from 2019 to 2025.