Amazon.com Inc (NASDAQ:AMZN) and Alphabet Inc (NASDAQ:GOOG)'s Google have become the subject of a probe launched by the US Federal Trade Commission (FTC) into whether both companies misled those who place advertisements on their websites, Bloomberg reported on Friday.
The probe is being conducted by the FTC's consumer protection unit, with focus on whether both the companies properly disclosed the terms and pricing for advertisements.
The federal agency is looking for details on the advertising auctions conducted by Amazon and whether it disclosed "reserve pricing" for some search ads.
Google, meanwhile, is being probed on whether its practices, including its internal pricing process, had increased the cost of advertisements as it was not disclosed to advertisers.
The investigation could have significant implications for the online advertising industry, possibly leading to changes in how big technology companies conduct business.
Shares of Amazon edged 0.6% lower to $228.69 in midday trading on Friday, while Alphabet’s Class A shares were little changed at $240.48.