On September 12, 2025, the digital advertising world was jolted by news that the U.S. Federal Trade Commission (FTC) had formally launched investigations into Google and Amazon, two of the industry’s most powerful players. The probes, which focus on whether the companies misled advertisers about how ads are priced and disclosed, could have sweeping consequences for the $600 billion global ad market and the broader tech sector. With both Google and Amazon already entangled in ongoing antitrust lawsuits and regulatory scrutiny, this latest development marks a pivotal moment in Washington’s ongoing effort to bring more transparency—and potentially more regulation—to Big Tech.
The FTC’s investigations, first reported by Bloomberg and confirmed by multiple outlets including Reuters and The Economic Times, are being spearheaded by the agency’s consumer protection unit. The central concern? Whether Google and Amazon have been forthright with advertisers about the true costs and mechanics of buying digital ads on their platforms. For Amazon, the spotlight is on its auction process, specifically whether advertisers were adequately informed about “reserve pricing”—the minimum price required to secure ad space. For Google, the probe zeroes in on its internal ad pricing practices and whether the company has quietly raised costs without properly notifying clients.
“The FTC is examining whether Amazon’s ad auctions properly disclosed ‘reserve pricing’ or price floors to advertisers,” reported Bloomberg, echoing the concerns of many in the industry. Meanwhile, Google faces questions about whether its pricing structure and any increases were clearly communicated to those purchasing ads. These are not trivial matters: search advertising alone brings in tens of billions of dollars each year for both companies, and even small changes in pricing practices can have outsized effects on advertisers and digital commerce as a whole.
According to The Economic Times, industry insiders say the FTC’s scrutiny is part of a broader push for accountability in online ad ecosystems, where algorithms and automated auctions dictate who sees what, and at what price, in real time. Critics have long argued that hidden fees or undisclosed price floors in these systems distort fair competition and make it difficult for advertisers—from small businesses to multinational brands—to plan and control their marketing budgets. “Opaque rules in digital ad markets distort competition and limit transparency,” noted a recent analysis by Search Engine Land, reflecting widespread frustration among advertisers.
For Amazon, this latest probe adds to a growing list of regulatory headaches. The company is already facing a lawsuit from the FTC for allegedly deceiving Prime customers and for monopolistic practices in its online marketplace. The current investigation, as reported by Bloomberg, stems from a broader antitrust inquiry into Amazon’s alleged monopolization of online services, with a trial scheduled for early 2027. Amazon, for its part, has declined to comment on the investigation, as has the FTC.
Google is no stranger to regulatory scrutiny either. The company is currently the subject of a parallel Justice Department effort to force it to divest key advertising technology assets—a move that could dramatically reshape the digital ad landscape. Earlier this month, U.S. District Judge Amit Mehta rejected the Department of Justice’s recommendations to force Google to sell off its Chrome web browser and to bar certain payments that make its search engine the default option on most smartphones. Instead, Judge Mehta ordered Google to share more data with rivals and allowed it to continue making payments for default status, as long as those deals aren’t exclusive.
The timing of the FTC’s probe is particularly significant. Both Google and Amazon are set to face federal antitrust trials beginning on September 22, 2025. These overlapping legal battles reflect a coordinated escalation in Washington’s attempts to check Big Tech’s control over digital markets. “The FTC’s findings could reshape digital ad market rules and disclosures,” wrote Nasdaq’s RTTNews, adding that potential penalties could include steep fines or even structural remedies that would force changes in how ads are bought and sold.
For advertisers, the stakes are high. If the FTC’s investigation results in clearer rules and greater transparency, it could level the playing field and restore trust in the digital ad ecosystem. “The probes address long-standing complaints about lack of transparency, which may force Google and Amazon to overhaul their disclosure policies,” observed Search Engine Land. Some analysts believe that enhanced transparency could actually benefit reputable platforms, as sophisticated advertisers may be more willing to direct larger budgets to companies they trust to play fair. Others warn that abrupt changes to auction models and pricing disclosures could destabilize the market, driving advertisers to rival platforms or reducing overall spending due to perceived risk and complexity.
There’s also the broader question of what this means for the future of online advertising. If the FTC finds evidence of deceptive practices, the companies could face civil fines and injunctions requiring them to adopt new transparency protocols. Such reforms might include mandatory upfront disclosures of all pricing factors, aligning with the FTC’s recent “junk fees” rule that demands total cost transparency in other sectors. According to Seeking Alpha, the ripple effects could extend beyond Google and Amazon, prompting similar scrutiny of other tech giants and increasing compliance costs across the industry.
Market reaction to the news has been relatively calm so far, but the outcome of these investigations could influence the trajectory of Google’s and Amazon’s highly profitable advertising divisions for years to come. Investors and advertisers alike are watching closely. “Any significant findings or rulings may trigger knock-on regulations or global copycat actions, resulting in new compliance costs, technology overhauls, and potential limitations on data-driven targeting—all of which could compress margins and stall innovation across the sector,” warned a recent market analysis.
Politically, the investigation reflects evolving priorities in Washington. Despite some political relief for technology companies earlier in 2025, FTC chairman Andrew Ferguson—a Republican who has pledged to “end Big Tech’s vendetta against competition and free speech”—has kept the sector firmly in his sights. Last month, Ferguson sent a letter to major tech companies, including Apple, Microsoft, Amazon, and Alphabet, warning them to maintain Americans’ data security or face consequences.
As the FTC’s probes into Google and Amazon’s ad practices unfold, the tech industry faces a period of heightened uncertainty—and perhaps, overdue reckoning. Whether the outcome is sweeping reform, incremental change, or a new status quo, the case will set important precedents for how digital advertising is regulated, how platforms interact with their clients, and how much transparency advertisers can expect in the years ahead.
For now, all eyes are on the FTC, Google, and Amazon as they navigate a regulatory landscape that is shifting beneath their feet. The stakes—financial, legal, and reputational—could hardly be higher.
