Online retailer Amazon’s logo and lettering can be seen on the facade of Amazon’s German headquarters.
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Australia’s competition regulator AmazonThe Australian arm of Prime has taken to court, claiming that unfair terms in its subscription agreement allowed the company to introduce advertising to its video streaming platform.
The Australian Competition and Consumer Commission (ACCC) said in a statement on Tuesday that Amazon Australia is suspected of using unfair terms to modify its Prime Video contracts between November 2023 and August 2025.
The ACCC said the deal meant that when Amazon introduced advertising to its Prime Video service in July 2024, more than 1 million annual Prime subscribers in the country would have to accept the ads or pay an additional A$2.99 ($2.05) per month for an ad-free option, with no right to a refund if subscribers chose to cancel their subscriptions.
“We allege that Amazon AU included a number of unfair terms in its contracts with annual Prime members in Australia and used some of these terms to advertise on Amazon Prime Video,” regulator Chair Gina Cass Gottlieb said.
The ACCC is seeking consumer redress, penalties, costs, declarations and other orders.
The ACCC said in a statement that the regulator investigated the terms of the deal following a report from a consumer after Amazon’s local arm introduced advertising on Prime Video in July 2024.
Asked for comment, an Amazon Australia spokesperson told CNBC via email: “We are closely reviewing the lawsuit brought by the ACCC. We are cooperating with the ACCC throughout the investigation and remain focused on providing the best experience for our Australian customers.”
The news comes after Amazon’s stock rose 3.2% on Monday following reports that consumer demand was higher than expected during the company’s extended Prime Day event in the U.S. Online shoppers in the U.S. spent more than $26.4 billion from June 23 to June 26, according to data firm Adobe Analytics.
