Amazon Hit with $20B Price Manipulation Suit from FTC and 22 States

Amazon is facing another regulatory challenge over allegations that it manipulated advertising prices on its platform. The Federal Trade Commission (FTC) and 22 US states have sued Amazon, claiming the company secretly increased the prices advertisers paid to promote products.

The lawsuit alleges that Amazon altered the mechanics of its advertising auctions in 2019, introducing an undisclosed mechanism that could push winning bids above what ordinary competition among bidders would produce. The regulator says this generated billions of dollars for Amazon at advertisers' expense, affecting over 1 million brands and sellers.

Amazon has rejected the government's claims, saying its advertising policies are designed to present shoppers with relevant promotions. The company argues that advertisers have received increasing value from the platform, citing a stable average cost per click between 2019 and 2024 despite increased sales.