Legal Insights

Watchdog Podcast | Amazon, Microsoft and the ACCC's Subscription Crackdown

• 18 August 2026 • 3 min read

In this episode of Watchdog, host and Partner, Shaun Temby, is joined by Partner, Brendan Tomlinson, to unpack two significant ACCC proceedings against Microsoft and Amazon, which could reshape how subscription businesses communicate with customers and manage contract changes.

Brendan and Shaun’s discussion explores allegations that Microsoft failed to adequately disclose subscription options when introducing its AI-powered Copilot product, and the ACCC's action against Amazon – the first major unfair contract terms action since significant reforms to the regime came into effect.

Together, Shaun and Brendan examine what these cases reveal about the ACCC's evolving approach to consumer protection, transparency, subscription models and unfair contract terms, along with the potential implications for businesses across technology, streaming, software and retail sectors.

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Key Topics Discussed

  • Microsoft Copilot subscription changes and ACCC allegations
  • Misleading and deceptive conduct by omission
  • Consumer expectations in subscription-based software services
  • The role of retention offers and legacy product options
  • Amazon Prime Video advertising changes
  • Australia's strengthened unfair contract terms regime
  • Unilateral variation clauses in customer contracts
  • Legitimate business interests and contract reviews
  • The ACCC's increasing focus on subscription business models
  • What businesses should do to prepare for regulatory scrutiny
     

Takeaways

The Microsoft and Amazon proceedings highlight a growing regulatory expectation that businesses provide greater transparency around subscription changes, pricing options and contract variations. While the courts have yet to determine the outcome of either case, the ACCC's actions signal continued scrutiny of subscription-based business models and a higher compliance burden for organisations seeking flexibility in customer contracts.

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The Watchdog podcast series discusses the ACCC’s leading cases throughout the year and how well they performed against their priorities.

Shaun Temby

Shaun has over two decades of expertise in commercial disputes, competition, and consumer law and provides strategic legal solutions to franchising and consumer markets clients.

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Brendan Tomlinson

Brendan advises on a wide range of IT transactions and supports clients with IP protection, commercialisation, privacy and cyber security.

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