Amazon Stock Drops After FTC Alleges $20 Billion Ad Overcharges
· Business · Economic Times, The Independent, Yahoo Finance
Amazon shares fell 2.5% on Monday following a lawsuit from the U.S. Federal Trade Commission and 22 states. The regulators allege that Amazon manipulated its advertising auction system to inflate prices for businesses, resulting in over $20 billion in overcharges for approximately 1.2 million advertisers. The FTC claims Amazon secretly inserted its own higher prices into auctions using a "soft reserve" system. Amazon has rejected the allegations, calling the case flawed and arguing that its platform provides value to sellers. The company generated roughly $68.6 billion in advertising sales during 2025.
Why it matters
The lawsuit targets a major high-margin revenue stream for Amazon and could lead to significant financial penalties or regulatory restrictions on its advertising business.
Read the original report — Economic Times
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.