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Lead DevelopmentFACT · 4/5•8 Sept '26•Via Digiday

FTC Amazon Case Highlights Opacity in Ad Auctions

The FTC's lawsuit against Amazon's on-platform search advertising business has drawn attention to the lack of transparency in digital ad auctions. Agency executives note that advertisers are not panicking, as opaque auction dynamics have become common across platforms like Meta and Google. Amazon's shift away from second-price auctions and its use of 'soft reserve' pricing are central to the FTC's case, but advertisers are accustomed to such practices. The article discusses how platforms increasingly control auction mechanics, leaving advertisers with limited levers and a focus on performance outcomes rather than auction fairness. Google's recent bidding updates further centralize control, while Meta pushes creative optimization. The piece underscores the industry's acceptance of these dynamics, prioritizing results over transparency.

•FTC sued Amazon over its on-platform search advertising auction practices, alleging a secret ad surcharge scheme.
•Amazon moved away from second-price auctions without notifying advertisers, a key point in the FTC complaint.
•Amazon implemented 'soft reserve' pricing, effectively a secondary floor price that could inflate costs above a pure second-price auction.

Entities:Amazon Meta Google

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