Australia sues Microsoft for misleading consumers into purchasing software at high prices

The Australian Competition and Consumer Commission (ACCC) has sued Microsoft, accusing the company of misleading millions of consumers into paying higher prices by bundling the artificial intelligence tool Copilot with Microsoft 365 software. The ACCC claims that starting from October 2024, the tech giant misled approximately 2.7 million users into believing they had to upgrade to the higher-priced Microsoft 365 Personal and Family subscription plans that included Copilot. After integrating Copilot, the annual subscription price for Microsoft 365 Personal increased by 45% to AUD 159, while the Family plan price rose by 29% to AUD 179. The ACCC pointed out that Microsoft failed to clearly inform users that they could still choose the cheaper "Classic" subscription plan without Copilot. It is reported that this Australian competition regulator is seeking fines against Microsoft's Australian subsidiary and its U.S. parent company, Microsoft Corporation, as well as compensation for consumer losses, injunctions, and legal costs. A Microsoft spokesperson responded via email, stating that the company is reviewing the allegations in detail