The Federal Trade Commission and 22 US states have filed a lawsuit against Amazon in Seattle federal court, accusing the company of manipulating its advertising auctions through a mechanism called « soft reserve bids ». These internal price floors, introduced as early as 2018, allegedly affected between 70% and 80% of Amazon’s ad auctions, driving pay-per-click costs up by as much as 50% during peak shopping days. Amazon’s advertising segment generated $68 billion in revenue in 2025, making it the third-largest digital ad platform worldwide behind Google and Meta. The company’s shares dropped 2.8% to 3.3% following the announcement of the lawsuit. This action adds to the 2023 antitrust case and the $2.5 billion settlement over Prime subscription practices.
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