Apple Has a Preferential Treatment on Amazon When It Comes to Ads

Apple Has a Preferential Treatment on Amazon When It Comes to Ads

Published: November 17, 2023

The partnership between tech giants Apple and Amazon has just come under scrutiny, revealing Apple's unique exemption from the ad chaos on Amazon's eCommerce platform.

In stark contrast to rivals like Samsung and Microsoft, Apple's listings on Amazon feature a pristine layout, free of competing ads and suggestions until the page's bottom.

This exclusive treatment isn't by chance; it traces back to Apple's private negotiations with Amazon, according to Business Insider.

Internal emails labeled "WW framework terms" disclose Apple's insistence on a clutter-free presentation, suggesting this was agreed under the deal these two companies reached in 2018.

The House Judiciary Committee disclosed an email illustrating Amazon's initial reluctance to tweak its search algorithm solely for Apple products.

Yet, the email hinted at a potential financial agreement, suggesting Apple might compensate Amazon for foregone ad revenue. Despite redacted specifics, insiders describe Apple's position as "massive preferential treatment."

The exclusivity extends beyond search results; Apple's product pages enjoy an uncomplicated interface, ensuring a seamless shopping journey. As Amazon's advertising unit remains a vital revenue source, Apple seems to have secured an exception, shielding its product pages from what it deems "junk ads."

Critics argue this special treatment contradicts Amazon's broader strategy, outlined in a recent Federal Trade Commission (FTC) lawsuit. The lawsuit accuses Amazon and ex-CEO Jeff Bezos of saturating the platform with irrelevant "junk ads" to bolster profits, allegedly encouraged by Bezos.

Despite potential discontent among Apple's competitors, this arrangement resembles offering exclusive spots in physical stores.

While Amazon's treatment of Apple may enhance the customer experience and potentially drive higher sales, concerns persist about fairness and equality within the eCommerce giant's marketplace.

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