US regulator sues Amazon over ad cost hike

The U.S. Federal Trade Commission and 22 states have filed a lawsuit against Amazon, accusing the company of raising advertising prices on its platform through secret auctions for over seven years, likely making tens of billions of dollars in profits. The lawsuit alleges that Amazon engaged in unfair practices, such as charging the full fees to auction winners despite a bidding system that allows paying just one cent above the highest bid, as well as using fake bidders, which led to increased costs for businesses and consumers. Internal documents pointed to the existence of "hidden additional fees," and the company's stock dropped by 2.5% afterward. These practices are aimed at increasing Amazon’s profits at the expense of advertisers and consumers.