US trade regulator and 22 states accuse Amazon of taking $20bn with secret surcharges
Guardian AU Business
β’Mon, 31 Aug 2026 19:41:52 GMT
π° What Happened
The US Federal Trade Commission and 22 states sued Amazon on Monday, aleging the retailer 'secretly and systematically overcharged' advertisers on Amazon.com and took in $20bn from hidden surcharges. FCC chair Andrew Ferguson said millions of advertising customers were misled into paying significantly higher prices, costs largely passed on to American consumers.
π The Backstory
Amazon's advertising business has surged to become the third-largest online ad marketplace after Google and Meta. The suit is the latest in a series of FCC and state actions targeting Amazon's practices, and arrives as regulators worldwide step up scrutiny of Big Tech business models.
π― Why It Matters
A $20bn hidden-fees claim is among the largest ever leveled at Amazon and, if proven, could force major changes to how its ad business prices and discloses fees. It also targets one of Amazon's most profitable growth engines at a moment of intense antitrust attention.
The US Federal Trade Commission and 22 states sued Amazon on Monday, aleging the retailer 'secretly and systematically overcharged' advertisers on Amazon.com and took in $20bn from hidden surcharges. FCC chair Andrew Ferguson said millions of advertising customers were misled into paying significantly higher prices, costs largely passed on to American consumers.
Amazon's advertising business has surged to become the third-largest online ad marketplace after Google and Meta. The suit is the latest in a series of FCC and state actions targeting Amazon's practices, and arrives as regulators worldwide step up scrutiny of Big Tech business models.
A $20bn hidden-fees claim is among the largest ever leveled at Amazon and, if proven, could force major changes to how its ad business prices and discloses fees. It also targets one of Amazon's most profitable growth engines at a moment of intense antitrust attention.