Microsoft Faces Major Lawsuit in Australia Over Alleged Deceptive Copilot AI Subscription Practices
18 Sources
[1]
Microsoft sued for allegedly tricking millions into Copilot M365 subscriptions
The Australian Competition and Consumer Commission (ACCC) is suing Microsoft for allegedly misleading 2.7 million Australians into paying for the Copilot AI assistant in the Microsoft 365 service. Even though subscribers could have stayed on their existing plan without Copilot and at the same
[2]
Microsoft is being sued with the claim that it "deliberately hid" cheaper Microsoft 365 plans
* ACCC sues Microsoft, alleging it hid a cheaper 'Classic' Microsoft 365 plan to push pricier Copilot plans * The 'Classic' option matched old pricing but was shown only during the cancellation flow, ACCC says * Microsoft says it values transparency and will cooperate; courts will decide if the
[3]
Australia sues Microsoft over forced Copilot integration in Microsoft 365
Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. Editor's take: Microsoft 365 (previously Office 365) has provided Redmond with a steady stream of cloud-based revenue since 2010. Like other major technology companies, Microsoft is now attempting
[4]
Microsoft sued for allegedly misleading millions of Australians with its AI pricing
When Microsoft told customers it was jacking up the price by 45% for its office suite, it gave them two options: accept the price for the product - and it's AI add-ons - or cancel. According to Australia's consumer watchdog, the tech giant allegedly failed to share that a third option was
[5]
Australia sues Microsoft over 'misleading' AI offer
Australia's competition watchdog accused Microsoft on Monday of misleading people into paying for its AI assistant Copilot. The authority said it had filed a suit in the Federal Court against Microsoft Australia and its parent Microsoft Corp. The software giant is accused of making "false or
[6]
Microsoft Sued in Australia Over 365 Price Hikes Tied to AI Copilot Rollout - Decrypt
The investigation was triggered by Reddit posts, consumer complaints, and tips revealing the hidden option. Australia's competition regulator is suing Microsoft, alleging the software giant deliberately misled 2.7 million customers about cheaper subscription alternatives when it forced its AI
[7]
Australia sues Microsoft over 'misleading' AI offer
Sydney (AFP) - Australia's competition watchdog accused Microsoft on Monday of misleading people into paying for its AI assistant Copilot. The authority said it had filed a suit in the Federal Court against Microsoft Australia and its parent Microsoft Corp. The software giant is accused of making
[8]
Australian regulator sues Microsoft over Microsoft 365 Copilot pricing notifications - SiliconANGLE
Australian regulator sues Microsoft over Microsoft 365 Copilot pricing notifications Australia's competition watchdog has sued Microsoft Corp. over the way the company rolled out artificial intelligence features to its productivity suite. The Australian Competition and Consumer Commission, or
[9]
Australian government sues Microsoft for 'deliberately' hiding Copilot-free Microsoft 365 plans
TL;DR: The Australian Competition and Consumer Commission (ACCC) is suing Microsoft for allegedly misleading 2.7 million Australians by hiding a lower-priced Microsoft 365 subscription option without Copilot AI after a price increase. The ACCC seeks penalties for denying consumers informed
[10]
ACCC alleges Microsoft misled users into price hikes for AI assistant
Gift 5 articles to anyone you choose each month when you subscribe. Microsoft misled millions of customers into paying more for its artificial intelligence assistant known as Copilot when they did not have to, the competition watchdog alleges. In filings with the Federal Court, the Australian
[11]
Microsoft Hit With Lawsuit in Australia Over Copilot AI Plan Pricing
The company allegedly did not tell users about a cheaper non-AI plan Microsoft is facing a lawsuit in Australia for allegedly misleading its Microsoft 365 subscribers in the country. The lawsuit has been brought forth by the Australian Competition and Consumer Commission (ACCC) against the Windows
[12]
Australia sues Microsoft over 'misleading' AI offer
Australia's competition watchdog accused Microsoft on Monday of misleading people into paying for its AI assistant Copilot. But there was a partly hidden third option -- visible only when people started to cancel -- of sticking to existing "Classic" plans without Copilot for the original price, the
[13]
Microsoft Under Fire In Australia After Watchdog Says Tech Giant Misled 2.7 Million Users Into Paying Higher Fees After AI Copilot Integration - Microsoft (NASDAQ:MSFT)
Australia's competition watchdog has taken Microsoft Corp. (NASDAQ:MSFT) to court, alleging the company misled millions of customers into paying more for its Microsoft 365 subscriptions after bundling them with its artificial intelligence tool, Copilot. Regulator Alleges Microsoft Misled
[14]
Microsoft Faces Lawsuit In Australia For Misleading Consumers
The Australian Competition & Consumer Commission (ACCC) has launched court proceedings against Microsoft Corporation and its Australian subsidiary, alleging that the tech giant misled roughly 2.7 million Australian subscribers of its Microsoft 365 "Personal" and "Family" plans. According to the
[15]
Microsoft faces legal action in Australia over Copilot pricing By Investing.com
Investing.com -- Australia's consumer watchdog has sued Microsoft, claiming the tech giant misled 2.7 million customers by making it difficult to avoid paying for new artificial intelligence services. The Australian Competition and Consumer Commission (ACCC) filed a case Monday in Federal Court
[16]
Australia sues Microsoft over 'misleading' AI offering
Sydney, Australia, Oct 27 (EFE).- Australia's competition regulator filed a lawsuit in the Federal Court on Monday against Microsoft Australia and its parent company, Microsoft Corporation, for allegedly deceiving some 2.7 million users in the country over its new Copilot artificial intelligence
[17]
Microsoft Sued by Australian Watchdog Over AI Pricing
SYDNEY--Australia's consumer watchdog is suing Microsoft, alleging the U.S. tech giant misled its 2.7 million customers by making it difficult for them to avoid paying for new artificial-intelligence services. The Australian Competition and Consumer Commission filed a case Monday in Federal Court
[18]
Australia sues Microsoft over AI-linked subscription price hikes
(Reuters) -Australia's competition regulator on Monday sued Microsoft, accusing it of misleading customers into paying higher prices for Microsoft 365 subscriptions after bundling its AI assistant Copilot into personal and family plans. The Australian Competition and Consumer Commission (ACCC)
Share
Copy Link
Australia's competition watchdog has sued Microsoft, alleging the tech giant misled 2.7 million customers by hiding cheaper Microsoft 365 'Classic' plans without AI features, forcing users to pay up to 45% more for Copilot integration or cancel their subscriptions entirely.
ACCC Files Major Lawsuit Against Microsoft
The Australian Competition and Consumer Commission (ACCC) has filed a federal court lawsuit against Microsoft Australia and Microsoft Corporation, alleging the tech giant deliberately misled approximately 2.7 million Australian customers regarding subscription renewal options for Microsoft 365 services
1
. The legal action centers on Microsoft's integration of its Copilot AI assistant into Microsoft 365 plans, which took effect on October 31, 20243
.
Source: Benzinga
The Alleged Deceptive Practices
According to the ACCC, Microsoft presented customers with what appeared to be only two options when their subscriptions came up for renewal: accept the significantly more expensive Copilot-integrated plans or cancel their subscriptions entirely
4
. However, the regulator alleges there was a third, undisclosed option that allowed subscribers to continue with "Classic" plans at their original pricing without Copilot integration2
.
Source: Gadgets 360
The price increases were substantial, with Microsoft 365 Personal subscribers facing a 45% increase from $109 to $159 annually, while Family plan subscribers saw a 29% increase from $139 to $179
4
. The ACCC claims that Microsoft only revealed the Classic plan option to customers who had already initiated the cancellation process, effectively hiding this alternative from those who might have preferred to continue without AI features5
.
Source: BleepingComputer
Investigation and Consumer Complaints
The ACCC's investigation was prompted by over 100 complaints from Australian consumers who contacted the regulator's chair, Gina Cass-Gottlieb, about Microsoft's practices
2
. The investigation drew on consumer reports and online commentary from platforms including Reddit, highlighting widespread concern about Microsoft's communication strategy4
.Cass-Gottlieb emphasized the essential nature of Microsoft Office applications in many people's daily lives, noting that "given there are limited substitutes to the bundled package, cancelling the subscription is a decision many would not make lightly"
3
. The regulator alleges that Microsoft deliberately concealed the Classic plans to increase uptake of the more expensive Copilot-integrated services.Related Stories
Legal Implications and Potential Penalties
The ACCC is seeking various remedies from the Federal Court, including civil penalties, injunctions to prevent similar conduct, consumer redress, and costs
1
. The potential penalties are severe, with Microsoft facing fines of up to $50 million per breach, or alternatively, 30% of the corporation's revenue during the alleged breach period if total benefits cannot be determined4
.The lawsuit alleges violations of several sections of Australian Consumer Law, specifically relating to misleading and deceptive conduct in trade or commerce
1
.Microsoft's Response and Global Implications
Microsoft has responded to the lawsuit with a statement emphasizing that "consumer trust and transparency are top priorities for Microsoft" and that the company is "reviewing the ACCC's claim in detail"
1
. The company has committed to working constructively with the regulator and ensuring its practices meet legal and ethical standards.Given that Microsoft's approach to communicating Copilot's launch was similar worldwide, legal experts suggest that similar actions might be expected in other jurisdictions
1
. This case could potentially set a significant precedent for how technology companies integrate AI services into existing subscription models and communicate pricing changes to consumers.References
Summarized by
Navi
[1]
[2]
[5]
Related Stories
Microsoft Apologizes and Offers Refunds to 2.7 Million Australian Customers Over Misleading AI Pricing
06 Nov 2025•Policy and Regulation
Microsoft faces CMA investigation over Copilot subscription price hike and customer transparency
29 Jul 2026•Policy and Regulation
Italy opens antitrust probe into Microsoft over AI-bundled Microsoft 365 price increase
26 Jun 2026•Policy and Regulation
Recent Highlights
1
OpenAI Pauses AI Model Training After Agent Hacks Australian Government Website
Technology
2
Meta Unveils Camera-Free AI Glasses and Muse Integration Amid Privacy Debate at Connect 2026
Technology
3
AI Researchers Sound Alarm: Companies Racing Toward Self-Improving Systems Despite Existential Risks
Policy and Regulation
Recent Highlights
Today's Top Stories
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Follow topics that matter to you and stay ahead.
