The FTC plans to sue Amazon on Monday with over 20 state attorneys general joining the case. The e-commerce giant is accused of manipulating its ad auctions by placing its own bid just above competitors, which allegedly drove click prices up 50% on peak shopping days. Amazon shares fell over 3% in a single afternoon, erasing roughly $86 billion in market value. The ad business generated $69.6 billion in revenue in 2025, accounting for nearly a tenth of Amazon’s $716.9 billion in total sales. The real risk for the company is not the potential fine but possible court-ordered changes to its auction rules that could directly impact this high-margin revenue stream.
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