ACCC sues Microsoft for allegedly misleading 2.7 million Australian customers over Microsoft 365 subscription changes
By
edwinjm
7mo ago· 6 min readenNews
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Summary
The Australian Competition and Consumer Commission (ACCC) has filed legal proceedings against Microsoft Australia and Microsoft Corporation for allegedly misleading approximately 2.7 million Australian customers regarding Microsoft 365 subscription changes. The ACCC alleges that since October 2024, Microsoft told subscribers with auto-renewal enabled that they must accept the integration of its AI assistant Copilot and pay higher prices to maintain their subscriptions, without clearly presenting alternative options. The case centers on whether Microsoft adequately informed customers about their choices when implementing these changes to its Microsoft 365 Personal and Family plans.
Key quotes
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The ACCC alleges that since 31 October 2024, Microsoft has told subscribers of Microsoft 365 Personal and Family plans with auto-renewal enabled that to maintain their subscription they must accept the integration of Copilot and pay higher prices for their plan
The ACCC alleges Microsoft failed to adequately inform customers about alternative options available to them
The case represents a significant consumer protection action involving one of the world's largest technology companies
The ACCC has commenced proceedings in the Federal Court against Microsoft Australia and its US-based parent company Microsoft Corporation for allegedly misleading approximately 2.7 million Australian customers when communicating subscription options and p
