The U.S. Federal Trade Commission sued Amazon over the ad rates that the e-commerce company charged suppliers to advertise on its platform.
The lawsuit was joined by some 20 U.S. state attorneys general, who claim that advertisers paid $20 billion in inflated costs. According to Amazon, advertisers did not pay more than they bid. However, according to the government’s suit, Amazon entered its own bid to raise the price, setting the price at its own bid 70 percent to 80 percent of the time.
Last year, Amazon paid $2.5 billion to settle a lawsuit over allegations that consumers were tricked into signing up for its Prime Video service.
Another lawsuit, alleging that Amazon is illegally monopolizing the market, is scheduled for next year.
Reportedly, Amazon earned $68 billion in advertising revenue last year.
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