Overview
- Australia’s competition regulator has filed Federal Court proceedings against Microsoft Australia and its U.S. parent over communications tied to Microsoft 365 Copilot pricing.
- The ACCC alleges subscribers were told to accept higher-priced Copilot plans or cancel, while a lower-cost 'Classic' option appeared only deep in the cancellation flow.
- About 2.7 million Personal and Family plan users were affected, with annual fees rising to A$159 for Personal and A$179 for Family after the Copilot integration.
- The case centers on two emails and a blog post that the ACCC says were false or misleading, following an investigation prompted by consumer reports and Reddit posts.
- The watchdog seeks penalties, consumer redress, injunctions and costs, and Microsoft says it is reviewing the claim and will work constructively with the regulator.