In brief
- Microsoft allegedly gave subscribers a choice between higher-priced Copilot plans or cancellation, while omitting a cheaper “Classic” option.
- The Classic plans appeared only during the cancellation flow, which the ACCC says was deliberately obscured.
- The investigation was triggered by Reddit posts, consumer complaints, and tips revealing the hidden option.
Australia’s competition regulator is suing Microsoft, alleging the software giant deliberately misled 2.7 million customers about cheaper subscription alternatives when it forced its AI assistant, Copilot, into Microsoft 365 plans alongside steep price increases.
The Australian Competition and Consumer Commission filed proceedings on Sunday against Microsoft Australia and its U.S. parent corporation, alleging the company provided subscribers with false information about their options after integrating Copilot into personal and family plans on October 31 last year.
Microsoft reportedly told auto-renewing subscribers they had two choices: accept Copilot integration with higher prices, or cancel their subscription entirely, according to the ACCC.
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Author: Vismaya V
