FTC Sues Amazon Over Alleged Advertising Price Manipulation

Amazon's stock price fell nearly 1.8% on Tuesday as investors reacted to an antitrust lawsuit filed by the US Federal Trade Commission (FTC) and 22 states against the e-commerce giant.

The FTC alleges Amazon manipulated advertising auction prices without advertisers' knowledge, potentially costing them $20 billion or more. The agency claims Amazon systematically inflated these prices, leading to billions of dollars in losses for advertisers.

Amazon has pushed back against the allegations, stating its advertising system is designed to improve ad relevance for shoppers and arguing that its retail and grocery prices meet or beat those offered by other retailers.

The lawsuit comes as Amazon's advertising business continues to grow, with revenue increasing 26% in the latest quarter to $19.8 billion, making it a significant contributor to the company's financial performance.