Australia sues Amazon unit over alleged breach via Prime Video ads

Australia's competition regulator has taken Amazon's Australian unit to court, alleging that its Prime subscription contracts contained unfair terms allowing the company to introduce advertising on Prime Video. The Australian Competition and Consumer Commission (ACCC) stated that between November 2023 and August 2025, Amazon Australia made negative changes to contracts for over one million annual subscribers without offering compensation.

The ACCC specifically highlighted that after July 2024, subscribers wanting to continue streaming without ads were required to pay an extra A$2.99 per month. This was imposed despite these subscribers having already paid A$79 (approximately $54.40) upfront for their annual service.

The regulator also implicated Amazon.com Services LLC, alleging it was aware of and involved in drafting the Australian contracts that included these contentious terms. The ACCC is seeking court declarations, penalties, consumer redress, and legal costs. Amazon had not immediately responded to a request for comment at the time of reporting.