The Economic Times·2025-09-12 14:02Core Viewpoint - The Federal Trade Commission (FTC) is investigating whether Amazon and Google misled advertisers regarding ad pricing and terms, indicating increased regulatory scrutiny of these major tech companies [2][12]. Group 1: Investigations and Regulatory Scrutiny - The FTC's investigations focus on the disclosure practices of Amazon and Google concerning ad pricing and terms [1][4]. - These probes represent a continuation of regulatory scrutiny that began during the first Trump administration, with previous findings indicating Google holds illegal monopolies in online search and advertising [2][7]. - The FTC's current investigations are part of a broader examination of Amazon's business practices, which have been under scrutiny since at least 2019 [9][12]. Group 2: Advertising Practices - Google utilizes automated auctions to sell search ads, which occur in less than a second after a user enters a query, while Amazon also employs real-time auctions for its sponsored listings [3][12]. - The FTC is particularly interested in whether Amazon disclosed "reserve pricing" for search ads, which are minimum price thresholds for advertisers [4][12]. - Google has been accused of adjusting its advertising auctions to meet revenue targets without adequately informing advertisers of these changes [7][12]. Group 3: Financial Performance and Market Position - Digital advertising has surpassed offline advertising, with Google being the market leader and Amazon ranking as the third-largest online advertising company [6][12]. - Amazon's advertising segment generated $56 billion in revenue last year, which includes various forms of advertising such as search ads and video ads [10][12]. - The FTC's investigations suggest that Amazon's marketplace practices may force sellers to purchase ads to ensure visibility for their products, complicating the search experience for consumers [11][12].