US Trade Committee sues Amazon over $20B charges
The US Federal Trade Commission along with 22 states have filed a lawsuit against Amazon, accusing the company of manipulating online digital advertising auctions. This manipulation has resulted in approximately 1.2 million customers incurring excess costs exceeding $20 billion. The complaint alleges that Amazon secretly imposed inflated fees on its clients by tampering with auction prices that determine advertising costs on its platform. It is claimed that these practices began in 2018 to conceal them from customers. Amazon responded to the allegations, describing them as misleading and offensive, and pointed out that the regulatory authorities are relying on outdated and selective documents. The investigation has garnered bipartisan support from both the Republican and Democratic parties. This lawsuit is the third filed by the Federal Trade Commission against Amazon, coming ahead of other legal proceedings, including one related to Amazon’s monopoly in the e-commerce market.
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