The Australian Competition and Consumer Commission (ACCC) has filed a lawsuit against Amazon AU, alleging unfair contract terms and deceptive practices related to the introduction of advertisements on Prime Video. The regulator claims that Amazon misled consumers by rolling out ads after initially promising an ad-free streaming experience.
Ad Rollout Controversy and Pricing Disputes
Amazon introduced advertisements on Prime Video in India in 2023 and expanded the practice globally by 2025. This move sparked backlash from subscribers who had been assured of an ad-free service. The ACCC's legal action focuses on the period from November 2023 to August 2025, during which Amazon allegedly engaged in unfair conduct. In India, Amazon increased the Prime Video subscription price from Rs 999 to Rs 1,499 in 2021, and later charged an additional Rs 699 for an ad-free add-on. The ACCC is seeking penalties, consumer redress, and declarations against Amazon AU.
Regulatory Scrutiny and Amazon's Response
The ACCC's lawsuit highlights growing regulatory scrutiny of Amazon's practices. While India's Competition Commission (CCI) has not yet announced similar action, the Australian case could set a precedent. Amazon Australia stated it is reviewing the ACCC's case and had cooperated fully during the investigation. The company emphasized its commitment to compliance but did not comment on the specific allegations.
Impact and Next Steps
If the ACCC succeeds, Amazon could face significant penalties and be required to compensate affected consumers. The case underscores the challenges tech companies face when altering service terms after initial promises. The outcome may influence how streaming platforms globally handle ad rollouts and subscription pricing.
