Amazon (AMZN) Faces Legal Challenge Over Prime Subscription Terms

AI Summary

Australia's competition regulator, the ACCC, is suing Amazon Australia (AMZN) over alleged unfair terms in Prime subscription contracts. The lawsuit, concerning terms in effect from November 2023 to August 2025, claims the contracts required over one million annual subscribers to accept advertising on Prime Video or pay an additional AU$2.99 ($2.05) monthly for an ad-free service starting July 2024. The ACCC seeks consumer redress and penalties following complaints about these changes. Concurrently, Amazon’s shares rose 3.2% amid strong consumer demand during its Prime Day event.