ACCC Lawsuit Against Microsoft
The Australian Competition and Consumer Commission (ACCC) has filed a lawsuit against Microsoft.
The case alleges microsoft misled millions of customers into paying more for microsoft 365 after adding its AI tool, Copilot.
Over 2.7 million Australians may have paid higher fees due to the upgrade.
Alleged Misleading Pricing Practices
Microsoft reportedly pushed users toward higher-priced microsoft 365 plans after Copilot’s introduction.
Personal plan prices rose by 45%, and family plan prices increased by 29% after the upgrade.
The ACCC claims microsoft did not clearly present cheaper “classic” microsoft 365 plans that did not include Copilot.
Customers only saw the lower-priced option when attempting to cancel their subscriptions.
This design allegedly misled customers into thinking they had no other choice, which may breach Australian consumer law.
Communication Concerns
Microsoft sent emails and published blog posts informing users of the price increase.
However, these communications reportedly did not mention the availability of the cheaper plan.
The ACCC argues that this lack of transparency gave users a false impression of their options.
Reuters reports that the lower-priced plan was effectively hidden during the renewal process.
ACCC’s Demands
The regulator seeks fines, refunds for affected users, and orders to prevent similar practices in the future.
Australian law allows companies to be fined up to A$50 million per breach, potentially higher depending on earnings from misleading conduct.
The ACCC emphasizes that tech companies must act transparently when changing pricing or plans.
Microsoft’s Response
Microsoft issued a brief statement saying it is carefully reviewing the ACCC’s complaint.
The final penalties will be determined by the court after examining all the evidence.
The case highlights the importance of clear communication for wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital tools used daily for work, study, and productivity.
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