The U.S. Federal Trade Commission Investigates the Transparency of Amazon and Google Ads
Reuters reported from a knowledgeable source that the U.S. Federal Trade Commission (FTC) is conducting an investigation into the compliance of Amazon and Google (owned by Alphabet) with transparency in their dealings with advertisers on their online platforms.
The investigations, led by the commission's consumer protection unit, focus on the integrity of the disclosure of terms and prices related to advertising services. Investigators are seeking to determine whether Amazon has clearly disclosed "reserve prices" in its advertising auctions, which is the minimum price that advertisers must accept before purchasing any advertisement.
The commission is also examining Google's practices, particularly regarding internal pricing mechanisms and the company's credibility in disclosing any increases in advertising prices.
This investigation comes amid increasing competition that Google faces in the search field, while its advertising business continues to grow.
For its part, Amazon declined to comment, while Alphabet did not respond to a request for comment. This investigation coincides with a court ruling issued on Tuesday, September 2, which required Google not to enter into exclusive contracts and to share search data, while allowing it to retain the Chrome browser.
