Expert analysis: Legal drama surrounding Amazon Prime Video - hidden price increase or legitimate contract change?

Expert analysis: Legal drama surrounding Amazon Prime Video - hidden price increase or legitimate contract change?

According to a report by www.teltarif.de,

As previously reported, Amazon Prime Video is planning to introduce a new form of advertising for its streaming service from February 5th. Customers who do not want to see these advertisements have the option to book an ad-free option for an additional monthly fee of 2.99 euros.

The Federal Association of Consumer Organizations (vzbv) plans to take legal action against Amazon Prime Video because they view the announcement of the advertising as a significant contractual change for which the consent of the users would have been required. Customers were informed by email that they would have to take action if they wanted to book the ad-free option at the additional cost. Otherwise, advertising would start running on February 5th. The vzbv describes this as a hidden price increase, as a monthly surcharge of 2.99 euros will be charged for an ad-free offer in the future.

vzbv boss Ramona Pop criticizes that Amazon cannot simply present its Prime Video customers with a fait accompli. The vzbv initially sent a warning to the German subsidiary “Amazon Digital Germany GmbH” and will now file a lawsuit because of the unilateral action. Pop emphasizes that Prime Video users are still entitled to the ad-free option at the previously contracted amount.

The introduction of new business models and advertising-financed content in streaming services is met with increasing criticism in Germany. vzbv's lawsuit against Amazon Prime Video could have an impact on the market and consumer behavior.

It remains to be seen how the vzbv's legal actions will affect the business practices of Amazon Prime Video and possibly other streaming providers in Germany.