FTC Sues Amazon Over Alleged Deceptive Advertising Practices

The Federal Trade Commission (FTC), along with 22 state attorneys general, has filed a lawsuit against Amazon.com Inc (AMZN) for allegedly manipulating its in-site search advertising auctions.

The lawsuit claims that Amazon's auction mechanisms have been inflated for over seven years, resulting in excess charges of more than $20 billion for over 1.2 million brands and sellers, including over 500,000 small and medium-sized enterprises.

Amazon generates about 74% of its revenue from retail, while 17% comes from Amazon Web Services and 9% from advertising services. The company's market capitalization is approximately $2.8 trillion, with a Price-to-Sales (P/S) ratio significantly above its historical median.