FTC probes Google and Amazon over search ad practices

The US Federal Trade Commission (FTC) has launched investigations into Amazon and Google to determine whether the tech giants misled advertisers about the pricing and terms of search advertising on their platforms. The inquiry, conducted by the agency’s consumer protection unit, highlights growing concerns about transparency in the fast-evolving digital advertising ecosystem.

According to people familiar with the matter, regulators are examining Google’s internal ad pricing process and whether advertisers faced undisclosed cost hikes. Meanwhile, Amazon’s ad auctions, including its “sponsored listings,” are under review for potential non-disclosure of reserve pricing — minimum thresholds advertisers must meet to secure placements.

The move marks another regulatory front for both firms, already facing lawsuits from federal agencies and states over alleged monopolistic behavior. Google has been accused of holding illegal monopolies in online search and ad technology, with prior revelations showing executives adjusted auction dynamics to hit revenue targets without informing advertisers. Amazon, meanwhile, has been under antitrust scrutiny since 2019, with ongoing cases questioning its marketplace practices and Prime subscription policies.

Search advertising is central to the growth of both companies, with Google dominating the market and Amazon steadily rising as the third-largest player. Advertising contributed $56 billion to Amazon’s revenue last year, underscoring the segment’s strategic importance.

The FTC’s latest inquiry underscores heightened scrutiny of digital platforms under the Trump administration, where regulators have signaled that policing Big Tech’s advertising practices remains a top priority. Both Google and Amazon have declined to comment on the ongoing investigations.