Microsoft Faces ACCC Lawsuit Over Alleged Microsoft 365 Price Increases
Australia’s competition watchdog has launched legal action against Microsoft, alleging the company misled 2.7 million Australian customers into paying higher prices for Microsoft 365 after integrating its Copilot AI assistant.
Key Allegations
The Australian Competition and Consumer Commission (ACCC) filed proceedings in the Federal Court against Microsoft Australia and its parent company, Microsoft Corporation. The regulator claims Microsoft provided misleading information about subscription options and price increases connected to Copilot integration.
In an official statement, the ACCC revealed: “Since 31 October 2024, Microsoft has 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 case centers on whether Microsoft properly informed customers about mandatory price increases when bundling Copilot with existing Microsoft 365 subscriptions.
