Investigation launched into Amazon and Google for transparency issues in search advertising costs
In a significant move, the U.S. Federal Trade Commission (FTC) and the Department of Justice (DOJ) have launched investigations into Amazon.com and Alphabet's Google, focusing on transparency in advertising auction practices and potential monopolistic control over digital advertising markets.
The investigations, announced on September 12, 2025, centre around concerns about proper disclosure of terms and pricing for advertisements. The FTC's scrutiny extends to Amazon's introduction of pricing transparency reports for its Demand-Side Platform (DSP) platform in March 2024, as well as Google's internal pricing processes and whether the search giant increased advertising costs without proper disclosure to advertisers.
Meanwhile, the publishing industry has expressed concerns about Google's policy changes, which they believe threaten legitimate media properties and crucial revenue streams. The News Media Alliance petitioned the DOJ and FTC over Google's content policy changes on December 2, 2024.
Former executives from both companies have also come forward, exposing internal manipulation schemes that allegedly helped achieve monopolistic control over digital advertising markets. A former Google executive, Ari Paparo, released a book in August 2025 detailing advertising manipulation schemes.
The regulatory landscape continues to evolve, with bipartisan legislation being introduced to address conflicts of interest in digital advertising. This move aligns with broader regulatory pressure for advertising transparency, with both Google and Amazon introducing transparency reports in response to the European Union's Digital Markets Act.
The FTC's investigations also cover Amazon's search advertising practices, seeking detailed information about the company's advertising auctions and whether it disclosed "reserve pricing" for some search advertisements.
Both Amazon and Google face separate federal lawsuits scheduled for trial on September 22, 2025. The September 22 trial dates will provide significant insight into how courts evaluate technology platform practices under antitrust law, potentially establishing important precedents for future enforcement actions.
Interestingly, the September 22 trials are not solely focused on the tech giants. The two Federal Court cases also involve companies in the transport and logistics sector affected by a ruling on the unusual liability limitations of the AB Spedlogswiss general conditions, impacting freight forwarders and their clients.
The U.S. Department of Justice pursues a parallel case against Google, seeking to force the company to divest its advertising technology tools. Google faces potential breakup across search and advertising operations following federal rulings against the tech giant in separate monopolization cases.
The FTC has sued Amazon in Seattle, alleging the company enrolled users in Prime subscriptions without their knowledge while making cancellation procedures difficult. The French regulator CNIL fined Google €325 million for Gmail advertising and cookie violations on September 1, 2025.
As artificial intelligence continues to reshape advertising technology, with Meta launching AI tools aimed at "fully automating ad creation" and platforms like Perplexity beginning monetization through advertising, the regulatory landscape remains dynamic and crucial for these tech giants to navigate.
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