The consumer watchdog is suing Microsoft for allegedly misleading around 2.7 million Australians over its Microsoft 365 subscriptions.
The ACCC has commenced proceedings in the Federal Court against Microsoft Australia and its parent company Microsoft Corporation for allegedly misleading millions Australian customers when communicating subscription options and price increases after it integrated its AI assistant, Copilot, into Microsoft 365 plans.
The ACCC has alleged that since October 31, 2024, Microsoft told subscribers of Microsoft 365 Personal and Family plans with auto-renewal enabled that to maintain their subscription they must accept the integration of Copilot and pay higher prices for their plan, or, alternatively, cancel their subscription.
The regulator said Microsoft misled customers by not disclosing that subscribers could retain their current plans without Copilot at their existing lower prices.
ABC News revealed in February that a customer had reported the tech giant to the regulator over the pricing changes.
After Microsoft increased its Australian Microsoft 365 subscription prices at the start of the year users flocked to online forums to criticise the changes.
ABC
