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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.

Google Fined $3.45 Billion by EU for Antitrust Breaches in Adtech; Trump Threatens Retaliation

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Google (Alphabet) has been fined €2.95 billion ($3.45 billion) by the European Union for abusing its dominance in the online advertising technology market, marking the fourth major EU penalty against the company in a decade.

The European Commission found that since 2014, Google unfairly favored its own adtech services, particularly its AdX exchange, to the detriment of rivals and online publishers. The watchdog ordered Google to end these self-preferencing practices and address conflicts of interest, warning that stronger remedies, including potential divestitures, remain on the table if compliance efforts fall short. Google has 60 days to propose changes and another 30 days to implement them.

U.S. President Donald Trump blasted the fine as “unfair” and “discriminatory,” threatening to launch a Section 301 trade investigation that could nullify EU penalties and impose retaliatory tariffs. “We cannot let this happen to brilliant American ingenuity,” Trump said, vowing to confront the EU directly.

Google said it would appeal, arguing the decision is “wrong” and would harm European businesses that rely on its services to generate ad revenue. “There’s nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives than ever,” said Lee-Anne Mulholland, Google’s VP of regulatory affairs.

The fine comes amid mounting U.S.-EU trade tensions, with Brussels under pressure to balance antitrust enforcement with the risk of Trump’s tariff retaliation on European exports, including cars. While the Commission stopped short of ordering a breakup, critics—including the European Publishers Council—warned that fines alone would not curb Google’s dominance in the €120 billion adtech market.

The ruling adds to Google’s history of penalties in Europe: €4.3 billion in 2018, €2.42 billion in 2017, and €1.49 billion in 2019. Meanwhile, Google faces a U.S. trial in September to determine remedies in a Justice Department case that found it illegally monopolized online advertising.

Google’s advertising business remains the backbone of its revenue, generating $264.6 billion in 2024 (75.6% of total sales) across services including YouTube, Gmail, Maps, and Google Play.

Shein Faces EU Complaint Over ‘Dark Patterns’ in Online Sales Tactics

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Pan-European consumer group BEUC has filed a formal complaint with the European Commission against fast-fashion giant Shein, accusing the online retailer of using manipulative design techniques—commonly known as “dark patterns”—to push consumers into buying more on its app and website.

According to BEUC’s report, Shein employs a variety of aggressive tactics, including pop-ups that warn users they may lose discounts if they leave the app, countdown timers that pressure customers to complete purchases quickly, and infinite scrolling that keeps shoppers continuously engaged. BEUC argues that these techniques encourage overconsumption and may violate EU consumer protection laws.

The organization also highlighted the excessive notifications sent by the Shein app, with one example showing a single phone receiving 12 push notifications in one day. BEUC Director General Agustin Reyna stated, “For fast fashion you need to have volume, you need to have mass consumption, and these dark patterns are designed to stimulate mass consumption.”

Reyna added that a satisfactory resolution would require Shein to remove these manipulative features, though he questioned whether the company has sufficient incentive to alter practices that drive sales volume.

Shein Responds, Tensions Remain

In response, Shein said it is cooperating with EU regulators: “We are already working constructively with national consumer authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations.” The company also expressed frustration that BEUC had declined its request for a meeting.

Shein’s success in Europe has been fueled by its highly engaging app experience, which incorporates gamification elements. For instance, its “Puppy Keep” game allows users to care for a virtual dog and earn reward points redeemable for free items. These points accumulate through daily log-ins, frequent scrolling, and purchases—further driving customer engagement and sales.

Broader Industry Under Scrutiny

BEUC’s complaint extends beyond Shein, calling on European consumer protection authorities to investigate similar practices across the broader fast-fashion industry. “Dark patterns are widely used by mass-market clothing retailers,” BEUC noted, urging regulators to expand their inquiry.

A total of 25 BEUC member organizations from 21 countries, including France, Germany, and Spain, have joined the complaint filed with the European Commission and the EU consumer protection network.

This latest action follows a separate warning issued by the European Commission last month, which notified Shein that some of its practices breach EU consumer law. The Commission warned that Shein faces potential fines if it fails to address these concerns.

Increasing Regulatory Pressure

In addition to consumer protection concerns, Shein is also under investigation by EU tech regulators for its compliance with online content rules as part of the bloc’s broader push to tighten oversight on major digital platforms.

Shein’s rival Temu, another rapidly growing discount platform, has also been targeted by BEUC for similar dark pattern practices.