FTC PROBES BIG TECH – Seriously Misleading Practices

With the FTC now investigating Amazon and Google for potentially misleading advertisers, renewed scrutiny of Big Tech’s power threatens to reshape the digital marketplace—raising urgent questions about fairness, transparency, and the reach of unelected regulators into the heart of American business.

Story Snapshot

The FTC has launched an active probe into Amazon and Google’s ad practices, focusing on whether they concealed ad pricing details from advertisers.
This investigation zeroes in on “reserve pricing” and undisclosed ad cost increases, not consumer-facing issues.
Both companies face growing regulatory and reputational risks as advertisers demand greater transparency in digital ad auctions.
The probe is part of a broader wave of government actions targeting Big Tech’s dominance and opaque business practices.

FTC Launches Investigation into Amazon and Google’s Ad Practices

The U.S. Federal Trade Commission (FTC) has initiated an investigation into Amazon and Google, examining whether they misled advertisers by failing to disclose crucial terms and pricing for ads on their platforms. The probe specifically targets “reserve pricing”—the hidden minimum price set for ad auctions—and whether Google increased ad costs without proper notification to advertisers. Both companies have declined to comment, while the FTC’s consumer protection unit continues gathering information. This investigation highlights concerns about the transparency and fairness of digital advertising, a sector dominated by these tech giants.

Amazon and Google have established themselves as the primary powerhouses in digital advertising, with Google leading in search ads and Amazon expanding rapidly through sponsored listings. For years, advertisers and regulators have criticized the complexity and lack of visibility in digital ad auctions, citing difficulty in understanding how prices are set or increased. The current probe follows previous Department of Justice and FTC actions targeting monopolistic behavior and deceptive practices in the tech sector. This investigation, however, focuses on advertiser-facing issues, reflecting a significant escalation in efforts to hold Big Tech accountable for business practices affecting the broader economy.

Key Players and Broader Implications for Advertisers

The FTC, under the leadership of Chair Andrew Ferguson, wields substantial investigative authority, while Amazon and Google maintain considerable market power and lobbying influence. Advertisers, though indirectly represented, are the immediate beneficiaries of any improvement in transparency and fairness resulting from the investigation. The probe’s outcome could set important precedents, potentially compelling more open disclosure of ad pricing and auction processes industry-wide. Short-term, Amazon and Google face heightened uncertainty and possible shifts in advertiser spending; long-term, regulatory actions could force sweeping changes in how ad auctions are run and disclosed.

The investigation is currently in its information-gathering phase, with no enforcement actions announced as of September 2025. Both companies continue to withhold public comment, and the FTC has not released details beyond confirmation of the ongoing probe. This regulatory scrutiny comes amid a global trend of increased oversight of digital advertising, antitrust lawsuits, and broader debates over Big Tech’s outsized influence. While advertisers may benefit from greater transparency and fairer pricing, industry defenders warn that excessive regulation could disrupt innovation and market efficiency. Nevertheless, the bipartisan push for accountability and transparency in digital markets is gaining ground, reflecting growing demands from both the public and policymakers.

Expert Analysis and Potential Industry Reforms

Industry analysts agree that digital ad auctions have long suffered from a lack of transparency, creating an information imbalance that favors platforms over advertisers. Experts support regulatory scrutiny as a necessary measure to ensure fair competition and protect advertisers from deceptive practices. However, academic voices caution that overly aggressive regulation could unintentionally stifle innovation or complicate the digital advertising ecosystem. The consensus among major news outlets and industry observers is clear: the FTC’s investigation is a pivotal moment for Big Tech, with the potential to drive reforms not only at Amazon and Google but across the entire digital advertising sector. As the investigation unfolds, the outcome will likely influence both the U.S. and global regulatory landscape for years to come.

FTC probes Google, Amazon for allegedly misleading advertisers https://t.co/bIVTaTPkvM

— ConservativeLibrarian (@ConserLibrarian) September 12, 2025

If the FTC enforces stricter disclosure requirements, advertisers could see improved market fairness, while Big Tech may face operational and financial challenges. The broader ad tech industry will be watching closely, as any regulatory changes may ripple outward—catalyzing reforms, shifting market dynamics, and redefining how digital advertising is managed in an era of increasing government oversight and public demand for accountability.