Amazon is facing legal action in Australia over its decision to introduce advertisements on Prime Video and charge subscribers an extra fee to continue watching without ads.
The Australian Competition and Consumer Commission (ACCC) has filed a case against Amazon Australia in the Federal Court, alleging that the company used unfair terms in its Prime subscription contracts. According to the regulator, these terms allowed Amazon to make major changes to the streaming service without compensating customers.
The ACCC estimates that more than one million annual Prime subscribers were affected between November 2023 and August 2025.
What is the case about?
The case relates to Amazon's decision to introduce advertisements on Prime Video in 2024.
According to the ACCC, customers who had already paid for an annual Prime membership were moved to an ad-supported version of Prime Video. Those who wanted to continue watching without advertisements had to pay an extra fee.
From July 2024, subscribers had to pay an additional A$2.99 a month for ad-free streaming, even though they had already paid A$79 for an annual Prime membership. At the time, more than 8,50,000 Australian subscribers had already paid for a year's subscription.
Why has the regulator objected?
The ACCC said customers who had already paid for an annual Prime membership ended up getting a different version of the service than the one they had signed up for. Unless they paid the extra monthly fee, they had to watch Prime Video with advertisements for the rest of their subscription period.
The regulator launched its investigation after receiving complaints from customers about the introduction of advertisements on Prime Video in 2024.
The ACCC is seeking court declarations, financial penalties, compensation for affected customers, legal costs and other orders against Amazon.
What has Amazon said?
An Amazon Australia spokesperson said the company is reviewing the case filed by the ACCC and had cooperated with the regulator throughout the investigation.
Prime Video has been offered as an ad-free streaming service for more than a decade as part of Amazon Prime, which also includes shopping benefits, faster deliveries and other entertainment services.
Amazon launched Prime in Australia in 2018 and started introducing advertisements on Prime Video in several countries in early 2024.