Overview
- Australia’s competition regulator filed Federal Court proceedings against Microsoft Australia and its U.S. parent over communications to auto‑renewing Microsoft 365 Personal and Family subscribers.
- Prices rose to A$159 for Personal (up about 45%) and A$179 for Family (up about 29%) after Copilot was bundled into the plans starting October 31, 2024, according to the ACCC.
- The case centers on two emails and a blog post that the ACCC alleges presented only a choice to accept higher‑priced Copilot plans or cancel, omitting the ‘Classic’ option at prior prices.
- The regulator is seeking penalties, injunctions, consumer redress and costs, with potential maximum fines of at least A$50 million per contravention or higher under statutory formulas.
- The action targets consumer Personal and Family plans with auto‑renewal and excludes Business and Enterprise tiers; Microsoft says it is reviewing the claim and emphasizes consumer trust and transparency.