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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.

FTC Probes AI Chatbots from Alphabet, Meta, OpenAI and Others

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The U.S. Federal Trade Commission (FTC) announced on Thursday that it has launched an inquiry into major providers of AI-powered consumer chatbots, including Alphabet (Google), Meta Platforms, OpenAI, Character.AI, Snap, and xAI.

Focus of the Inquiry

The FTC is demanding details on:

  • How chatbots are tested, measured, and monitored for potential negative impacts.

  • Monetization strategies, including how companies profit from user engagement.

  • Processing of user inputs and the generation of responses.

  • Use of conversation data, and whether it is exploited for advertising, training, or other commercial purposes.

Rising Scrutiny

Generative AI tools have recently drawn criticism following safety scandals:

  • Reuters revealed internal Meta policies that allowed chatbots to engage in romantic conversations with children.

  • OpenAI is facing a lawsuit alleging ChatGPT contributed to a teenager’s suicide.

  • Character.AI is under a separate lawsuit tied to another teen death.

Company Responses

  • Character.AI: said it will cooperate, highlighting new safety features rolled out over the past year.

  • Snap: welcomed the FTC’s focus, saying it supports policies that balance innovation with community protection.

  • Meta: declined to comment.

  • Alphabet, OpenAI, xAI: did not immediately respond.

Bigger Picture

The inquiry reflects Washington’s growing concern over AI risks, especially for children and vulnerable users. Regulators are looking to balance innovation with consumer protection, while lawsuits and scandals raise urgency for stricter oversight.

Senator Wyden Urges FTC Probe Into Microsoft Over Cybersecurity Failures

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U.S. Senator Ron Wyden has called on the Federal Trade Commission (FTC) to investigate Microsoft for what he described as “gross cybersecurity negligence” that he says poses an ongoing threat to U.S. national security.

In a September 10 letter to FTC Chairman Andrew Ferguson, Wyden accused Microsoft of creating vulnerabilities that have led to ransomware attacks on critical infrastructure, including health care organizations. He argued that Microsoft’s default Windows configurations and continued support for outdated encryption standards have left customers exposed.

Wyden compared the company to “an arsonist selling firefighting services,” saying its dominance in enterprise IT leaves agencies and firms with “no choice” but to use its products despite the risks.

The Ascension Case

Wyden highlighted the May 2024 ransomware attack on Ascension, a major U.S. hospital operator, as a prime example. Hackers reportedly exploited a contractor’s laptop after a malicious link appeared through Microsoft’s Bing search engine, eventually breaching Ascension’s Active Directory server and exposing the data of 5.6 million people.

Wyden said Microsoft’s default encryption settings — particularly support for the outdated RC4 standard — facilitated the attack.

Microsoft’s Response

Microsoft acknowledged that RC4 is insecure but stressed it makes up “less than 0.1% of traffic.” The company said it discourages use of RC4 but cannot yet fully disable it because “disabling its use completely would break many customer systems.”

The company pledged to disable RC4 by default in certain Windows products starting Q1 2026 and to roll out additional mitigations.

Broader Context

Wyden has repeatedly urged scrutiny of Microsoft’s role in cyber incidents, including the July 2023 breach by Chinese-linked hackers who stole thousands of U.S. officials’ emails.

The FTC confirmed receipt of Wyden’s letter but offered no further comment.

The senator’s push comes amid broader concerns that the monopoly-like grip of Microsoft on enterprise IT both amplifies security risks and limits customers’ ability to choose safer alternatives.