FTC to Sue Amazon Over Secret Ad Price Hikes, Alleging Billions in Harm
AMZN sits 33% above its 52-week low of $196 on light trading volume (0.3× avg).
Summary
The FTC and more than 20 US states have sued Amazon.com, according to court records. The lawsuit alleges Amazon secretly raised minimum ad prices via 'soft reserve' bids, reaping tens of billions over seven years. The complaint claims Amazon intervened in auctions 70-80% of the time, raising pay-per-click costs by 50% on major shopping days. This is the third major FTC case against Amazon, following the $2.5B Prime settlement and an ongoing monopolization suit. Amazon's ad business earned $68B in 2025, so the alleged overcharges are material.
At the time of this announcement, AMZN was trading at $261.17 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.8T. The 52-week trading range was $196.00 to $287.20. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.