The Australian Competition and Consumer Commission (ACCC) has filed a lawsuit against Microsoft for allegedly misleading approximately 2.7 million Australians regarding Microsoft 365 subscription price hikes. The ACCC claims Microsoft failed to disclose that customers could retain their existing plans at lower prices without the new AI feature, Copilot, which was bundled into the updated subscriptions. The regulator is seeking significant penalties for what it deems serious misconduct affecting a large number of consumers.

The Australian Competition and Consumer Commission (ACCC) has filed a lawsuit against Microsoft, alleging that the company misled users into paying higher prices for its AI tool, Copilot, even when they did not wish to use it. This case highlights the challenges and strategies technology giants face in monetizing their AI investments amid growing consumer technology integration.

The ACCC has initiated legal proceedings against Microsoft for allegedly misleading 2.7 million Australian customers regarding their Microsoft 365 subscriptions by failing to disclose the existence of a lower-cost "Classic" plan. The case centers on claims that Microsoft's communications suggested subscribers had to accept a price increase for the new Copilot integration or cancel their subscription, thus denying them informed decision-making. The ACCC is seeking consumer redress and penalties for the alleged conduct.