FTC investigating ad sale practices at Google and Amazon

The Federal Trade Commission (FTC) is investigating whether Amazon and Google have misled advertisers regarding the pricing and terms for their ad sales. The investigation focuses on the auction-style sale of advertising space by the companies, specifically on Google's internal pricing process and Amazon's use of "reserve pricing" for some of its ads. The FTC is looking into whether Google has been surreptitiously increasing the cost of ads in ways that advertisers were not informed about. Similarly, the agency is questioning whether Amazon has adequately disclosed its "reserve pricing" practice, which sets a price floor that advertisers must meet to buy an ad. These investigations come amidst broader scrutiny of big tech companies by federal agencies. Earlier this year, a federal judge ruled that Google held a monopoly in online ad tech, and the company has also faced a Department of Justice monopoly case involving its Chrome browser. The FTC has identified big tech as one of its top priorities, and these investigations are part of a larger effort to hold these companies accountable.