Particle.news
Download on the App Store

ACCC Sues Microsoft Over Alleged Misleading Copilot Bundling and 365 Price Hikes

The regulator says Microsoft hid a cheaper 'Classic' plan, prompting a court case.

Overview

  • Federal Court proceedings name Microsoft Australia and its U.S. parent over Microsoft 365 Personal and Family renewals.
  • The ACCC alleges subscribers were told to accept higher-priced Copilot plans or cancel, while a cheaper Classic option appeared only in the cancellation flow.
  • About 2.7 million auto-renewing customers were affected as annual prices rose to A$159 for Personal (up 45%) and A$179 for Family (up 29%).
  • The watchdog seeks penalties, injunctions, consumer redress, and costs, with potential fines per breach reaching A$50 million or alternatives under Australian law.
  • Microsoft says it is reviewing the claim and states that consumer trust and transparency are top priorities.