The US Federal Trade Commission (FTC) has launched a formal investigation into tech giants Google and Amazon, focusing on their search advertising practices and whether these may violate fair competition rules and harm consumers.
The probe will examine how the two companies present paid search results compared to organic ones, and whether the distinction is sufficiently clear to users. It will also evaluate transparency in advertising, pricing mechanisms, and whether the firms exploit their dominant positions to maximize ad revenues at the expense of smaller competitors.
Legal and digital experts note that this move reflects broader regulatory pressure facing big tech companies in both the US and Europe, as authorities seek to curb monopolistic practices that may hinder innovation or restrict healthy competition.
Google and Amazon are major players in the digital advertising market. Google dominates global search advertising through its search engine, while Amazon leverages its e-commerce platform to promote paid placements in search results. Their dominance has made them constant targets of scrutiny, especially given the exponential growth of the digital advertising sector, valued at hundreds of billions of dollars annually.
Observers suggest that the current investigation could lead to hefty fines or force the companies to revise their digital ad policies to ensure greater transparency and fairness in consumer access. It may also set a precedent that could affect other tech firms engaged in similar practices.
The inquiry comes amid rising global concerns about the overwhelming influence of big tech on the digital economy and the need to strike a balance between consumer protection and market competition—placing this probe as part of a wider regulatory push against tech monopolies.
