Amazon began showing advertisements on its Prime Video service in 2024, altering its previous ad-free approach and asking users for an extra payment. This change, which added €2.99 monthly to skip ads, was launched across several nations, but it has hit a legal snag in Germany.

The Munich Regional Court has declared this action illegal. The court determined that Amazon did not get appropriate user agreement before changing its existing service agreements.

Judges stated that including advertisements represented a “significant worsening” of the Prime subscription. They viewed ad-free viewing as a fundamental aspect of the service, even without direct promotion.

The court also criticized Amazon’s email to customers, labeling it deceptive. The message implied no action was needed from subscribers, despite the actual change in contract terms. This led to Amazon being found in breach of Germany’s Unfair Competition Act.

While Amazon does not have to issue refunds or remove ads right away, it must stop its misleading messages and send out corrective information. Amazon has expressed its disagreement with the decision and is thinking about filing an appeal.

Given this situation, we are waiting to see if this legal problem causes more difficulties for the platform in India. We are also waiting to see if the platform chooses to eliminate the ads.