Amazon and Google fell during intraday trading following reports that the U.S. Federal Trade Commission is investigating their search advertising businesses.
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On Friday, Amazon and Google both fell during trading, with their declines expanding to 0.43% and 0.45% respectively. Reports say that the U.S. Federal Trade Commission has launched an investigation into Amazon and Google’s search advertising businesses.
The U.S. Federal Trade Commission is investigating whether Amazon and Google have misled advertisers in their search advertising business, focusing on whether both companies have fully disclosed advertising terms and pricing mechanisms.
According to sources, the FTC’s consumer protection division is reviewing Amazon’s ad auction system, particularly whether the company disclosed certain “floor price” settings for search ads to advertisers. At the same time, the FTC is also investigating Google’s internal pricing process, including whether it increased ad costs without fully notifying advertisers.
This investigation opens a new front in regulatory scrutiny faced by Google and Amazon. Previously, a court found Google constituted an illegal monopoly in online search and some search advertising markets.
Both investigations are still ongoing, showing that even as tech executives work to gain support from the Trump administration, regulatory scrutiny of large tech companies continues.
Updates ongoing
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