Australia’s competition regulator takes Amazon to court over alleged unfair Prime subscription contract terms
The logo and lettering of online retailer Amazon can be seen on the facade of Amazon Germany’s headquarters.
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Australia’s competition regulator is taking Amazon‘s Australian unit has sued, claiming unfair terms in Prime subscription agreements allow the company to include advertising on the video streaming platform.
The Australian Competition and Consumer Commission (ACCC) made a statement. expression It was alleged on Tuesday that Amazon Australia used unfair terms to manipulate Prime Video contracts between November 2023 and August 2025.
The ACCC said the contracts required more than one million annual Prime subscribers in the country to accept advertising or pay an additional AU$2.99 ($2.05) per month for an ad-free option when Amazon rolls out ads to its Prime Video service in July 2024, and they were not entitled to a refund if they chose to cancel their subscription.
“We allege that Amazon AU inserted numerous unfair terms into its contracts with annual Prime subscribers in Australia and then relied on some of these terms to bring advertising to Amazon Prime Video,” Gina Cass-Gottlieb, the regulator’s chief executive, said.
The ACCC is seeking consumer compensation, penalties, costs, declarations and other orders.
The ACCC said in a statement that Amazon’s local unit’s contracts were being investigated by the regulator after it received reports from consumers after the company launched advertising on Prime Video in July 2024.
Asked for comment, an Amazon Australia spokesperson told CNBC in an email: “We are thoroughly reviewing the case filed by the ACCC. We have cooperated with the ACCC throughout the investigation and remain focused on providing the best experience for our Australian customers.”
The news comes after Amazon shares rose 3.2% on Monday amid reports of stronger-than-expected consumer demand during the company’s extended Prime Day event in the United States. U.S. online shoppers spent more than $26.4 billion from June 23 to June 26, according to data firm Adobe Analytics.
