Australia’s competition watchdog has sued Amazon.com Inc. (NASDAQ:AMZN), alleging the e-commerce giant used unfair subscription terms to force more than one million annual Prime members to either watch advertisements on Prime Video or pay extra to remove them.
Australia Alleges Amazon Used Unfair Prime Subscription Terms
On Tuesday, the Australian Competition and Consumer Commission announced that it has launched legal proceedings against Amazon’s Australian business.
It alleged that the company relied on unfair contract terms between November 2023 and August 2025 to change the conditions of its Prime Video service.
According to the regulator, Amazon introduced advertisements on Prime Video in July 2024 and required annual Prime subscribers to either accept the ads or pay an additional AU$2.99 (about $2.05) per month for an ad-free experience.
