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Microsoft sued for allegedly tricking millions into Copilot M365 subscriptions

  • The Australian Competition & Consumer Commission filed a federal-court lawsuit accusing Microsoft Australia of misleading subscribers after notifying them about Copilot integration on October 31, 2024.
  • Microsoft allegedly steered customers to upgraded tiers by design, as the ACCC alleges it omitted explicit reference to Microsoft 365 Personal and Family Classic plans except during cancellation, misleading users.
  • Price changes and platform-wide AI integration underpin the regulator's case, with Microsoft 365 Personal plan prices up 45% and Microsoft 365 Family plan prices rising 29% after Copilot's addition.
  • The ACCC is seeking fines, consumer refunds, and injunctions, with the court able to impose up to `$50 million` per breach or up to 30 percent of revenue in the worst case.
  • Microsoft responded that it is reviewing the regulator's complaint and engaging with authorities, while the ACCC alleges unclear communication gave users a false impression about Microsoft 365 options.
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Microsoft has already expressed its views on the case and has announced that it will review the procedure and, if necessary, adapt it.

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channelnews.com.au broke the news in on Monday, October 27, 2025.
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