Key facts
- Australia's competition regulator has sued Amazon's Australian unit.
- The lawsuit alleges Amazon used unfair contract terms to add advertising to Prime Video.
- Over 1 million annual subscribers were allegedly affected without compensation.
- Subscribers who wanted ad-free streaming after July 2024 faced an additional A$2.99 monthly fee.
- Amazon.com Services LLC was allegedly involved in drafting the contracts.
Australia's competition regulator, the Australian Competition and Consumer Commission (ACCC), has initiated legal action against Amazon's Australian unit. The ACCC alleges that Amazon used unfair terms in its Prime subscription contracts to introduce advertising on Prime Video without adequate compensation for its subscribers.
Between November 2023 and August 2025, Amazon Australia allegedly made negative changes to the contracts for over one million annual subscribers. The regulator stated that after July 2024, subscribers wishing to maintain ad-free streaming would need to pay an additional A$2.99 per month, despite having already paid A$79 for the annual service. The ACCC also implicated Amazon.com Services LLC, alleging its involvement in drafting the contracts containing these terms.
The ACCC is seeking court declarations, penalties, consumer redress, and legal costs.