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FTC investigates Google and Amazon over ad pricing transparency

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The U.S. Federal Trade Commission (FTC) has opened probes into Google and Amazon, examining whether the tech giants misled advertisers about the terms and costs of placing ads on their platforms, according to a source familiar with the matter.

The investigations, led by the FTC’s consumer protection unit, focus on whether the companies properly disclosed pricing structures and auction practices. Regulators are scrutinizing Amazon’s use of “reserve pricing”—a minimum price advertisers must accept before buying an ad—and whether those rules were clearly communicated. Google is being investigated for whether it raised ad costs internally without disclosing the changes to advertisers.

Both companies declined to comment on the probe.

The news comes as the two firms face mounting legal challenges. On September 22, trials are set to begin in separate federal cases:

  • The FTC vs. Amazon in Seattle, alleging the company enrolled consumers into Prime without consent and made cancellations excessively difficult.

  • The DOJ vs. Google in Virginia, where regulators are seeking the breakup of its advertising technology business, after a judge ruled the company illegally monopolized digital ads.

The FTC is also pursuing a broader case accusing Amazon of holding illegal monopolies in online marketplaces.

With the U.S. already pursuing multiple landmark antitrust and consumer protection cases, the latest probe further underscores regulators’ intensified scrutiny of Big Tech’s advertising power, a market worth hundreds of billions annually.

Netflix Chief Product Officer Eunice Kim to Depart, CTO Steps In

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Netflix announced Wednesday that Eunice Kim, its chief product officer since 2023, will leave the company. Chief Technology Officer Elizabeth Stone will assume the role on an interim basis.

Kim, who joined Netflix in 2021, led the consumer product innovation team and played a key role in reshaping the platform’s connected-TV interface, unveiled in May to simplify navigation and improve user experience. She also contributed to major growth initiatives such as Netflix’s ad-supported plan, helping the company grow its membership from 200 million to over 300 million subscribers during her tenure.

“Over the past five years, we grew the business together… by successfully launching and scaling many major growth initiatives, including the ads plan,” Kim reflected in a statement.

Before joining Netflix, Kim held senior product roles at Google Play and YouTube.

Netflix continues to perform strongly, beating second-quarter earnings expectations and raising its annual revenue guidance in July, though much of the forecast boost came from currency tailwinds rather than stronger demand. The company is pushing into advertising as a way to attract price-sensitive customers, though it has said ads won’t be a primary revenue driver this year.

The streamer has also moved into live programming, including WWE wrestling, as part of its strategy to diversify content and expand its audience base.

Trade Desk Shares Plunge After CEO Flags Tariff-Driven Pressure on Large Advertisers

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Trade Desk (TTD.O), the cloud-based advertising technology firm, faced its largest single-day stock drop on record Friday after CEO Jeff Green warned that ongoing tariff uncertainties are causing some of the world’s biggest advertisers to hold back on ad spending. The sharp decline threatened to erase nearly $16 billion from the company’s market value if losses hold.

Green highlighted that Trade Desk’s focus on large global advertisers makes it particularly vulnerable to economic pressures related to trade policies, contrasting with competitors that rely more on small and medium-sized businesses. The tariff-driven caution has led to a slowdown in launching new ad campaigns, especially in sectors most impacted by trade tensions.

Rosenblatt Securities analyst Barton Crockett noted that Trade Desk’s growth decelerated and underperformed Meta’s 22% growth, raising concerns that “closed gardens” like Meta’s platforms may be outpacing the open internet ad ecosystem that Trade Desk serves. Additionally, Trade Desk’s heavy exposure to large brands facing tariff pressures has added to investor concerns.

Despite the headwinds, the company projects current-quarter revenue of at least $717 million, roughly in line with analyst expectations. Still, at least 11 analysts have lowered their price targets on Trade Desk stock, bringing the median target down to $84.

Analysts at MoffettNathanson pointed out that as Trade Desk signs more brands to joint business plans, agencies might increasingly bring media buying in-house, posing another challenge.

On a leadership note, Trade Desk appointed Alex Kayyal as its new chief financial officer, effective August 21, succeeding Laura Schenkein.