Australia is taking legal action against Microsoft for allegedly misleading consumers about price increases for Microsoft 365 Personal and Family subscriptions.
The Australian Competition and Consumer Commission (ACCC) claims that approximately 2.7 million Australians were affected by the misleading price hikes, which were introduced in November 2024 due to the inclusion of Copilot features.
“We’re concerned that Microsoft’s communications denied its customers the opportunity to make informed decisions about their subscription options, which included the possibility of retaining all the features of their existing plan without Copilot and at the lower price,”
said ACCC Chair Gina Cass-Gottlieb. Consumers could have kept their current pricing by switching to new “classic” plans, but many may not have been aware of this option.
The ACCC is seeking to hold Microsoft accountable for its alleged misleading practices.
Author's summary: Australia sues Microsoft over misleading price hikes.