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Amazon shares tumble 4.6% after FTC ad-overcharge allegations

Amazon (AMZN) fell about 4.6% to $254.18 Tuesday after the FTC and 22 states alleged Amazon rigged sponsored-product auctions and extracted more than $20 billion in ad overcharges.

AMZN

Amazon.com NASDAQ:AMZN, the e-commerce, advertising and cloud-computing powerhouse, tumbled approximately 4.6% to $254.18 Tuesday as regulators went straight for its advertising machine.

The Federal Trade Commission and 22 states allege Amazon rigged sponsored-product auctions and extracted more th…