Amazon and Google are currently embroiled in significant legal battles as they face scrutiny from U.S. government regulators, marking a crucial moment for Big Tech. In Virginia, Google is contesting a lawsuit from the Department of Justice (DOJ) concerning its digital advertising operations. A judge previously ruled that Google holds an unlawful monopoly in specific segments of online advertising technology.
Meanwhile, Amazon’s courtroom challenges are unfolding in Seattle, where the Federal Trade Commission (FTC) accuses the e-commerce titan of intentionally misleading consumers regarding their subscriptions to Amazon Prime. According to the FTC’s lawsuit, which was filed in 2023, Amazon was aware that users faced difficulties when trying to cancel their Prime memberships but chose to ignore proposed solutions to streamline the process.
The trial, set to begin with jury selection on Monday and opening arguments scheduled for Tuesday, focuses on allegations that Amazon employed deceptive interface designs to manipulate users into subscribing to or renewing their Prime memberships. The FTC argues that these practices violate the Restore Online Shoppers’ Confidence Act, intended to provide consumers with clarity regarding online transactions and prevent unauthorized recurring charges.
The cancellation process for Amazon Prime, reportedly dubbed “Iliad” internally by the company, was named after Homer’s epic poem describing a protracted war, highlighting the cumbersome nature of the cancellation procedures. This detail was included in FTC filings as evidence of Amazon’s intention to complicate the process for users.
Amazon, which boasts a Prime membership rate of approximately 75% among Americans, contends that users subscribe because they find value in the service. The repercussions of this trial could be severe for Amazon and its executives, especially since U.S. District Judge John H. Chun has indicated that key individuals responsible for the Prime cancellation process may be held personally accountable if the jury rules in favor of the FTC. Judge Chun is also managing a separate antitrust case against Amazon, alleging the company disproportionately burdens third-party sellers by leveraging its marketplace. This case is set for trial in October 2026.
In response to the FTC’s allegations, an Amazon spokesperson asserted that both the company and the implicated executives acted appropriately, emphasizing the firm’s commitment to customer satisfaction.
On the east coast, Google faces similar scrutiny, with a federal court examining its digital ad business during the remedies phase of a trial that is expected to last several weeks. Earlier this year, Judge Leonie Brinkema found that Google maintains monopoly power in the digital advertising market, underlining that the company engaged in anticompetitive practices through acquisitions and auction tactics.
The DOJ, bolstered by 17 state attorneys general, is pursuing remedies that could include mandating a breakup of Google’s ad technology business. They are advocating for the divestiture of Google Ad Manager, a core tool for publishers and advertisers in the digital advertising space. Google has stated its intention to appeal the ruling regarding its monopoly status, with executives arguing that the proposed fixes by the DOJ could harm small businesses reliant on Google’s integrated tools.
Both companies are at the forefront of intense legal scrutiny that could reshape the landscape of digital commerce and advertising, exposing the deeper complexities and ethical considerations surrounding their business practices.
