🇦🇺 Microsoft Sued in Australia for Allegedly Misleading Users Over Copilot Price Hike

Microsoft is facing legal action in Australia after the Australian Competition and Consumer Commission (ACCC) filed a lawsuit accusing the tech giant of misleading its Microsoft 365 subscribers.The issue began when Microsoft integrated its AI assistant Copilot into Microsoft 365 and raised the subscription prices. On October 31, 2024, the company informed users through emails and a blog post that they could either pay the higher price or cancel their subscription.

However, the ACCC claims Microsoft did not mention a third option — to continue with their existing plan at the same price without AI features. This omission allegedly misled around 2.7 million users in Australia.The Personal plan price rose 45%, from AUD 109 (₹6,300) to AUD 159 (₹9,200), and the Family plan increased 29% to AUD 179 (₹10,300).ACCC Chair Gina Cass-Gottlieb stated that companies must provide honest information about services and prices. Misleading consumers could breach Australian Consumer Law, which carries fines of up to AUD 50 million (₹289 crore) per violation — or higher based on revenue.