FTC probes Amazon and Google over search ad pricing disclosures

The U.S. Federal Trade Commission launched investigations into Amazon.com and Alphabet's Google on September 12, 2025, examining whether the tech giants misled advertisers who place advertisements on their platforms, according to sources familiar with the matter. The probe focuses specifically on whether these companies properly disclosed terms and pricing for advertisements, marking another significant regulatory challenge for both companies.

The investigations, conducted by the FTC's consumer protection unit, center on transparency in advertising auction practices. For Amazon, regulators seek detailed information about the company's advertising auctions and whether it disclosed "reserve pricing" for some search advertisements. Reserve pricing refers to the minimum price advertisers must accept before they can purchase an advertising slot.

The agency simultaneously examines Google's practices, including internal pricing processes and whether the search giant increased advertising costs without proper disclosure to advertisers. This investigation follows Bloomberg News' initial reporting on the development and represents the latest in a series of regulatory actions against major technology platforms.

Two trials scheduled for September 22

Both companies face separate federal lawsuits scheduled for trial on September 22, 2025. The FTC has sued Amazon in Seattle, alleging the company enrolled users in Prime subscriptions without their knowledge while making cancellation procedures difficult. The complaint details systematic practices that allegedly violated consumer protection standards.

The U.S. Department of Justice pursues a parallel case against Google, seeking to force the company to divest its advertising technology tools. This action follows a Virginia judge's determination that Google maintained illegal monopolies in digital advertising markets. The lawsuit represents part of broader efforts to address competition concernsin the $700 billion digital advertising ecosystem.

According to court documents, Google faces potential breakup across search and advertising operations following federal rulings against the tech giant in separate monopolization cases. The Eastern District of Virginia found that Google illegally monopolized key advertising markets, opening the door for structural remedies that could reshape how digital advertising operates.

Industry reactions highlight ongoing concerns

Digital Content Next, the only trade association exclusively representing digital media companies, noted that the investigation brings attention to existing lawsuits by state attorneys general against Google that have yet to reach trial. Jason Kint, CEO of Digital Content Next, pointed out that the development "skips over the remedies for Google' violating antitrust law with its ads biz that go to trial in ten days."

The investigation occurs as former Google executives expose internal manipulation schemes that helped the company achieve monopolistic control over digital advertising markets. Ari Paparo's book "Yield: How Google Bought, Built, and Bullied Its Way to Advertising Dominance" documents secret programs with codenames like "Bernanke" and "Poirot" designed to systematically extract revenue from publishers and advertisers.

Transparency requirements under scrutiny

The FTC's focus on disclosure practices aligns with broader regulatory pressure for advertising transparency. Both Google and Amazon have introduced transparency reports in response to the European Union's Digital Markets Act, which encourages increased visibility in digital advertising ecosystems.

Amazon's new pricing transparency report for its Demand-Side Platform offers EU advertisers detailed breakdowns of publisher earnings, supply-side fees, and total advertiser costs. The initiative, implemented in March 2024, represents efforts to provide clearer insight into complex programmatic advertising transactions.

Google has similarly enhanced transparency measures, including full placement reporting for Search Partner Network following decades of advertiser demands for visibility into ad placement locations. These developments reflect growing industry pressure for clearer disclosure of advertising mechanics and pricing structures.

Broader regulatory context

The investigations emerge amid intensifying scrutiny of major technology platforms' market practices. The FTC has pursued multiple enforcement actions against companies for deceptive advertising practices, securing significant settlements and permanent industry bans in cases involving business opportunity schemes.

European regulators have also imposed substantial penalties for advertising violations. France's data protection authority CNIL fined Google €325 million on September 1, 2025, for displaying advertisements in Gmail without consent and violating cookie requirements during account creation.

The regulatory landscape continues evolving as lawmakers introduce bipartisan legislation targeting conflicts of interest in digital advertising. The AMERICA Act, introduced by Senator Mike Lee on March 13, 2025, would prohibit companies with more than $20 billion in annual digital advertising revenue from simultaneously operating multiple supply chain layers.

Market dynamics and competitive concerns

The investigations address concerns about market concentration in digital advertising, where Google and Amazon hold dominant positions. Google operates advertising exchanges that facilitate millisecond transactions resembling Wall Street trading operations, while Amazon has invested heavily in retail media capabilities expected to reach $60 billion in spending during 2025.

Recent court findings have validated concerns about anticompetitive behaviors in digital advertising markets. Internal communications from legal proceedings suggest coordinated efforts to disadvantage competing platforms while simultaneously increasing advertiser costs and reducing publisher revenue shares.

Amazon faces its own regulatory challenges, with privacy advocates urging enforcement action against the company's data sharing practices under the Digital Markets Act. The Irish Council for Civil Liberties has demanded immediate enforcement against Amazon's data collection across its platform ecosystem.

Technical complexity and enforcement challenges

The advertising technology landscape presents unique enforcement challenges due to its technical complexity and rapid evolution. Transaction ID controversies between demand-side platforms and publishers highlight broader structural issues requiring regulatory attention.

Industry experts note that DSPs desire to optimize bid strategies through predictive algorithms that assess supply path efficiency, while publishers generate unique identifiers for each impression. This creates technical conflicts that underscore deeper transparency issues in programmatic advertising.

The investigations occur as artificial intelligence continues reshaping advertising technology. Meta has launched AI tools aimed at "fully automating ad creation," while platforms like Perplexity have begun monetizing through advertising, creating entirely new publisher categories that compete with traditional web publishers.

Publishing industry implications

For publishers and media organizations, the investigations represent broader questions about platform power and revenue distribution. News publishers have urged antitrust action over Google's site reputation abuse policy, which affects publisher revenues by potentially removing sites from search results for publishing affiliate content.

The News Media Alliance formally petitioned U.S. antitrust regulators on December 2, 2024, expressing concerns about Google's approach to third-party and affiliate content. The organization argues that policy changes threaten legitimate media properties and crucial revenue streams at a time when news organizations face significant economic pressures.

Looking ahead

Neither Alphabet nor Amazon immediately responded to requests for comment regarding the FTC investigations. The companies face mounting regulatory pressure across multiple jurisdictions, with European Union investigations, Department of Justice antitrust cases, and state attorney general actions targeting various aspects of their business operations.

The FTC also pursues a separate case alleging Amazon holds illegal monopolies among online superstores and marketplaces. These parallel investigations demonstrate the agency's comprehensive approach to addressing competition concerns in digital markets.

The September 22 trial dates for both companies will provide significant insight into how courts evaluate technology platform practices under antitrust law. The outcomes could establish important precedents for future enforcement actions and shape the regulatory framework governing digital advertising markets.

For the marketing community, these developments underscore the importance of understanding regulatory evolution in digital advertising. Transparency requirements continue expanding as regulators demand clearer disclosure of advertising mechanics, pricing structures, and data handling practices.

The investigations reflect broader tensions between platform innovation and regulatory oversight, as authorities seek to balance competition concerns with technological advancement. The results may fundamentally alter how major advertising platforms operate and disclose their practices to advertisers and publishers.

Sources

• Reuters report, September 12, 2025: "US FTC probes Google, Amazon over search advertising practices, source says"
• X (Twitter) post by Jason Kint (@jason_kint), September 12, 2025
• Bloomberg News initial reporting on FTC investigations
• RTT News report: "FTC Launches Probe On Amazon And Google Over Search Advertising Practices"

Timeline

• September 12, 2025: FTC launches investigations into Amazon and Google's search advertising practices
• September 22, 2025: Both companies face separate federal trials - FTC vs Amazon over Prime enrollment practices, DOJ vs Google over advertising technology monopolies
• March 2024: Amazon introduces pricing transparency reports for DSP platform in response to Digital Markets Act
• August 2025: Former Google executive Ari Paparo releases book exposing advertising manipulation schemes
• September 1, 2025: French regulator CNIL fines Google €325 million for Gmail advertising and cookie violations
• December 2024: News Media Alliance petitions DOJ and FTC over Google's content policy changes affecting publisher revenues

Summary

Who: The U.S. Federal Trade Commission investigates Amazon.com and Alphabet's Google for potential advertising disclosure violations

What: FTC probe examines whether companies properly disclosed search advertising terms, pricing, and auction practices to advertisers

When: Investigation announced September 12, 2025, with separate trials for both companies scheduled September 22, 2025

Where: FTC consumer protection unit conducts investigations while related federal cases proceed in Seattle and Virginia courts

Why: Regulators investigate potential deception of advertisers regarding reserve pricing, auction mechanics, and cost increases in digital advertising markets valued at $700 billion globally