Amazon Faces Australian Lawsuit Over Prime Video Advertising

The Australian Competition and Consumer Commission (ACCC) has initiated legal action against Amazon’s Australian unit, alleging the company employed unfair contract terms regarding its Prime subscription service. The regulator claims that Amazon introduced advertising to the Prime Video platform without providing adequate compensation to existing subscribers. This development affects over 1 million annual subscribers in Australia who were subjected to these service changes between November 2023 and August 2025.

The core of the complaint involves the transition to an ad-supported model. While subscribers initially paid an upfront annual fee for ad-free access, they were later required to pay an additional A$2.99 per month to maintain that ad-free experience. The ACCC asserts that forcing subscribers to pay for a feature they had already pre-paid for under a fixed contract constitutes an unfair practice. The change gained momentum after July 2024, as the company moved to restructure its streaming model globally.

This legal challenge marks a significant escalation in regulatory scrutiny regarding how global tech giants alter subscription terms after contract execution. For the Indian market, where Prime Video remains a dominant streaming platform, the case serves as a critical indicator of how regional authorities may monitor subscription pricing strategies. Amazon has indicated that it is cooperating with the investigation and is currently reviewing the legal claims. The outcome could set a precedent for future consumer protection policies, influencing how Amazon handles global subscription tier adjustments and user compensation in other jurisdictions including India.