FTC, 22 States Allege Amazon Rigged Ad Auctions to Hit Revenue Targets
Newly unredacted court filings detail claims that Amazon secretly manipulated its search ad auctions to inflate prices and meet internal financial goals.
The Federal Trade Commission and a coalition of 22 state attorneys general have filed an updated complaint against Amazon containing newly unredacted details that allege the e-commerce giant deliberately manipulated its online search advertising auction system to artificially drive up prices paid by advertisers.
According to the unredacted material, Amazon allegedly deployed deceptive and unfair practices within its ad auction platform, with the purported goal of satisfying internal corporate revenue and financial targets — a charge that, if proven, would indicate the company prioritized its own bottom line over transparent marketplace competition.
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The case centers on Amazon's sponsored-product advertising ecosystem, one of the most lucrative digital ad markets in the United States, where brands and third-party sellers bid for prominent placement in search results. Critics and regulators have long argued that Amazon occupies a structurally dominant position that gives it unique leverage to set the terms of that competition.
The disclosure of previously redacted portions of the complaint marks a significant escalation in the government's public case, allowing outside observers — including advertisers, competitors, and lawmakers — to scrutinize the specific mechanics of conduct that regulators characterize as hidden price inflation. The breadth of the coalition, spanning more than two dozen jurisdictions, signals sustained political and legal pressure on Amazon's advertising business from multiple fronts.
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