The U.S. Federal Trade Commission (FTC) and 22 states filed a lawsuit against Amazon on Monday, accusing the tech giant of systematically manipulating online digital advertising auctions. According to the legal action, these practices resulted in overcharges exceeding $20 billion.

Systematic Manipulation and Secret Charges

The lawsuit, filed in a federal court in Washington state, alleges that Amazon "secretly and systematically overcharged" approximately 1.2 million advertising clients. The alleged fraud was carried out by manipulating the auction mechanisms the platform uses to determine the price of advertisements.

Impact on Advertisers

The allegations focus on how the company manages its advertising ecosystem. With more than 1.2 million customers reportedly affected, the case highlights the massive scale of the financial burden caused by the alleged manipulative practices.