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FTC and 22 States Sue Amazon Over Ad Auction Pricing

9/1/2026

39 8 Full Breakdown

Summary

Story summary

The U.S. FTC and 22 states sued Amazon for inflating ad auction prices.
The complaint says Amazon added a soft reserve price to auctions in 2019.
Internal emails reveal Amazon Ads used a proxy 2nd price and an auction participant.
Advertisers paid their own winning bid in 80% of Sponsored Products auctions by 2024.
The FTC estimates the scheme extracted over $20 billion, seeks penalties while Amazon claims advertisers saved $8 billion.

History

Historical Context

After the 1998 United States v. Microsoft antitrust suit—filed May 18, 1998 by the DOJ and 20 states and later settled with Microsoft agreeing to change its practices—the FTC and 22 states in 2024 allege Amazon used a 2019 soft-reserve to overcharge advertisers by more than $20 billion. The Microsoft precedent fuels calls for tighter marketplace oversight.

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Story summary

The U.S. FTC and 22 states sued Amazon for inflating ad auction prices.
The complaint says Amazon added a soft reserve price to auctions in 2019.
Internal emails reveal Amazon Ads used a proxy 2nd price and an auction participant.
Advertisers paid their own winning bid in 80% of Sponsored Products auctions by 2024.
The FTC estimates the scheme extracted over $20 billion, seeks penalties while Amazon claims advertisers saved $8 billion.

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