The US Federal Trade Commission plans to file suit on Monday accusing Amazon of
secretly manipulating ad-auction pricing since 2018 and deceiving advertisers,
extracting tens of billions of dollars over seven years. The complaint, joined
by more than 20 state attorneys general, will be filed in federal court in
Seattle. FTC alleges Amazon changed its auction strategy by entering a hidden
“soft floor” minimum above the second-highest bid, driving up advertiser
payments; advertisers reportedly suffered billions in losses and states may seek
recovery. Amazon operates the world’s third-largest digital ad platform; ad
revenue was $68bn in 2025. This is the FTC’s third major case against Amazon —
the company paid $2.5bn to settle a Prime-related suit last year and faces a
separate antitrust trial next year.
