Amazon is facing a lawsuit brought by US states and a federal watchdog that alleges the company rigged billions of dollars in advertising pricing, according to the BBC. The allegations have not been proven and will be contested through the legal process.
The legal action involves the US Federal Trade Commission (FTC). According to the BBC, Amazon responded to the lawsuit by arguing that the FTC “misunderstands” its advertising market.
Further details of the specific claims and Amazon’s full defence were not available in the material reviewed. It is not yet known how the court will rule or what remedies, if any, are being sought.
Why it matters
The lawsuit involves regulators and multiple US states challenging how one of the country's largest online retailers prices advertising. The outcome could affect Amazon's advertising operations, though the allegations remain unproven and the case is at an early stage.