Episode summary
Amazon, Google Probed by FTC Over Search Advertising Practices | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Scarlet Fu, Alexis Christoforous · Guests: Justin Teresi, Anurag Rana, Geetha Ranganathan
Summary
The episode focused first on Bloomberg reporting that the FTC is probing whether Amazon and Google misled advertisers about search-ad pricing and terms. The antitrust analyst said the matter looks more like a consumer-protection review than a breakup-style antitrust case, and he argued that any remedies would likely be far narrower than in the Google ad-tech and search cases already moving through the courts. He also said the inquiry could take years and may never lead to formal charges.
The discussion then turned to broader tech and regulatory news. An analyst said Adobe’s strong revenue outlook and AI adoption numbers show progress, but that investors will likely need several more quarters before they are convinced Adobe can monetize AI reliably. The analyst also said OpenAI’s move toward a for-profit structure will hinge on Microsoft’s access to models and revenue share, and that Apple’s delayed iPhone Air launch in mainland China should mainly push revenue recognition into a later quarter. Microsoft Teams’ EU scrutiny was described as part of a longer-running bundling and tying fight.
In media, the analyst said Paramount Skydance’s reported bid for Warner Bros. Discovery would likely be an all-cash offer for the whole company, not just the studio and streaming assets. He said the deal could create major cost savings and layoffs, but that regulatory risk looks manageable because there is no broadcast-network overlap.
Key takeaways
- The FTC’s Amazon and Google review appears to center on misleading ad terms and pricing, not classic antitrust breakup risk, the analyst said.
- The analyst said Google’s earlier remedies in search advertising could overlap with some of the transparency issues now under scrutiny.
- Adobe’s AI story may improve, but Wall Street will likely need multiple quarters of sustained adoption before rerating the stock, the analyst said.
- OpenAI’s conversion path depends on preserving Microsoft’s model access and revenue-sharing economics, according to the analyst.
- Paramount Skydance’s reported Warner Bros. Discovery bid could face layoffs and cost cuts, but the analyst said regulatory barriers look more manageable than in a broadcast merger.
Notable quotes
“this case, it really looks like more of a consumer protection investigation, not an antitrust kind of investigation”
“These things can take years absolutely to pan out. A lot of times there's no case that's even brought at the end of them”
“it's going to take multiple quarters of this to convince Wall Street that this is a story where Adobe has figured out um AI and how to monetize off of it”
“the biggest thing is will Microsoft still have access to OpenAI's you know top-of-the-line models or not”
“We're going to see the same thing with Paramount and Skyance and now when you kind of see this mega merger there absolutely is going to be a ton of layoffs”
How the episode opens
Bloomberg Audio Studios podcasts radio news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m.
Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. There was a headline today about how Amazon and Google are being probed by the Federal Trade Commission on their search advertising practices.
This is according to Bloomberg reporting, citing people who are familiar with the matter. So, we need to bring in Justin Teresi. He is the antitrust litigation and policy analyst here for us at Bloomberg Intelligence.
Justin, just walk us through what these headlines mean to you when you look at it through your antitrust lens.
Hi, Scarlet. Happy Friday to you. So, interestingly enough here, this case, it really looks like more of a consumer protection investigation, not an antitrust kind of investigation.
So, what I mean by that here is that we're really looking at the pricing and the terms that perhaps were set forth by Amazon and by Google in their their workings with advertisers and whether or not that pricing and those terms was misleading in any way. So, a different kind of series of facts here from what we're seeing in the the antitrust cases advertising with a big one coming up in about a week. The remedies trial in the Google ad tech case starts in Virginia very soon.
More risk there if you ask me. But this one here really focused on those pricing policies. It looks like at those companies and the remedies here probably nowhere near the kind of breakup risk that we would see in in a more antitrust aligned case.
That's what I was going to ask uh Justin is whether or not, you know, this makes the case to bolsters the case to break up these tech giants.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- ftc antitrust probes
- search advertising pricing
- amazon google ad practices
- adobe earnings ai
- media m&a bids
Companies and tickers mentioned
- AMZN
- GOOGL
- GOOG
- ADBE
- PARA
- Amazon
- Adobe
- Paramount Global
- Warner Bros. Discovery
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Bloomberg Intelligence
-
Instant Reaction: Nvidia CEO Jensen Huang Ousted by Nvidia Board | Bloomberg Intelligence -
Nvidia’s Huang Ousted by Board in Move That Roils AI Economy | Bloomberg Intelligence -
CoreWeave Shares Soar After AI Computing Firm Eases Debt Fears | Bloomberg Intelligence -
Anthropic Targets $1.4 Trillion Valuation in Blockbuster IPO | Bloomberg Intelligence -
Nvidia Probe Into CEO Affair Raises Thorny Questions for AI | Bloomberg Intelligence -
Election 'Blue Wave' & Your Wallet; Navigating AI-Driven Market Volatility | Bloomberg Intelligence
Bloomberg Intelligence, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
