Australian regulator takes legal action against Amazon over alleged unfair terms in Prime Video subscription contracts

Deep News06-30

The Australian competition regulator announced on Tuesday that it has initiated legal proceedings against a local subsidiary of Amazon.com, alleging that its Prime subscription contracts contain unfair terms that permit the company to introduce advertisements on Prime Video.

The Australian Competition and Consumer Commission (ACCC) alleges that between November 2023 and August 2025, Amazon.com's Australian unit used these unfair terms in its Prime contracts to make detrimental changes affecting over one million annual subscribers without providing any compensation.

The ACCC further stated in its announcement that, starting in July 2024, subscribers wishing to continue receiving an ad-free streaming service were required to pay an additional A$2.99 per month. This was despite annual subscribers having already prepaid A$79 (US$54.40) for the service.

The regulator also alleges that Amazon.com Services LLC was aware of its Australian subsidiary's conduct and was involved in drafting the Australian contracts that contained the relevant terms.

The ACCC is seeking court declarations, financial penalties, consumer redress, coverage of legal costs, and other orders.

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