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Australia Takes Microsoft to Court, Says It Misled 2.7 Million Customers

Microsoft Australia is being sued by the Australian Competition and Consumer Commission for allegedly misleading 2.7 million customers regarding Microsoft 365 subscription pricing involving the AI tool Copilot.
The ACCC claims Microsoft did not adequately inform users that a cheaper 'classic' subscription plan was available without Copilot until they initiated cancellation.
As a result of these misleading communications, subscription prices for Microsoft 365 plans increased significantly, with personal subscriptions rising by 45% and family plans by 29%.
The ACCC is seeking penalties and consumer redress, with potential maximum fines for Microsoft possibly reaching A$50 million per breach of Australian consumer law.

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