What happened
According to reports, the U.S. Federal Trade Commission is preparing to file a lawsuit against Amazon concerning its handling of advertisers.
The planned suit accuses Amazon of deceiving advertising customers, according to the report.
Following the news, Amazon's stock extended its decline, falling 3.5% to reach a new intraday low.
Why it matters
This potential legal action adds to the regulatory pressure facing Amazon, particularly around its advertising business, which has become a significant part of its operations.
The sharp market reaction suggests investors are concerned about the possible consequences, including financial penalties or forced changes to how Amazon deals with advertisers.
Key facts
The U.S. Federal Trade Commission reportedly intends to sue Amazon over advertiser issues.
Amazon is accused of deceiving advertisers.
Amazon's share price fell 3.5%, hitting an intraday low.
What to watch next
Whether the FTC formally files the lawsuit and what specific allegations it includes.
How Amazon responds to the allegations and whether this affects its advertising practices or relationships with advertisers.