Amazon (AMZN) and Alphabet’s Google (GOOGL) are facing a probe by the U.S. Federal Trade Commission (FTC) on whether they misled advertisers about the search ad practices on their websites, Bloomberg reported. These investigations are being conducted by the FTC’s Consumer Protection Unit.
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FTC Investigates Amazon and Google’s Search Ad Practices
The FTC’s Consumer Protection Unit is investigating whether Amazon and Google adequately disclosed the terms and pricing of their advertisements.
Notably, Amazon runs real-time auctions to place ads within its product listings (called sponsored listings or sponsored ads), which appear when users search for specific products. The FTC is reportedly requesting information on these auctions. The agency is seeking details on whether Amazon disclosed the use of “reserve pricing” — minimum price levels that advertisers must meet before they can purchase an ad.
Likewise, Google sells search ads through automated auctions that occur in less than a second after a user submits a query. The FTC is investigating Google’s ad practices, mainly looking into the search engine giant’s internal pricing methods. The agency is seeking details on whether Google raised ad costs without properly disclosing it to advertisers.
Tech Giants Continue to Face Regulatory Pressures
The FTC’s investigations into search ad practices are vital, given the dominance of Google and Amazon in the digital ad market. Google is the market leader in the digital advertising space, while Amazon is the third-largest online ad company.
On September 22, Amazon will face a trial in Seattle for allegedly enrolling users in its Prime subscription program without their knowledge and making it difficult to cancel the service. Additionally, the e-commerce and cloud computing giant will face a second trial in early 2027, focused on antitrust allegations that the company has monopolized online marketplace services.
Separately, on September 22, a federal court in Virginia is scheduled to hold a remedies trial to decide if Google must sell parts of its ad technology business. The Department of Justice (DOJ) is seeking to force Google to divest its ad tech business to restore competition. The court previously ruled that Google unlawfully maintained a monopoly in the ad tech market.
According to TipRanks’ Risk Analysis Tool, Legal and Regulatory risks accounted for 21% of Google’s overall risks in Q2 2025.
In comparison, Legal and Regulatory risks constituted 25% of Amazon’s overall risks in Q2 2025.
Wall Street’s Ratings on AMZN and GOOGL Stocks
Using TipRanks’ Stock Comparison Tool, we see that Wall Street has a Strong Buy consensus rating on both Amazon and Alphabet stocks. However, the average price target for AMZN stock indicates a 16% upside potential, while the average price target for GOOGL stock implies a possible downside of 2.3%.
AMZN stock has risen 4% year-to-date, while GOOGL stock has risen more than 27%.
