Australia Sues Microsoft Over Misleading Price Hikes
Australia is taking legal action against Microsoft for allegedly misleading consumers regarding price increases for Microsoft 365 Personal and Family subscriptions.
The Australian Competition and Consumer Commission (ACCC) claims that approximately 2.7 million Australians were misled by AI-related price hikes for these subscriptions.
Background of the Issue
In November 2024, Microsoft increased the prices of Microsoft 365 Personal and Family plans due to the inclusion of Copilot features.
However, consumers had the option to keep their current pricing by switching to new "classic" plans, but only if they were aware of this option.
"We're concerned that Microsoft's communications denied its customers the opportunity to make informed decisions about their subscription options, which included the possibility of retaining all the features of their existing plan without Copilot and at the lower price,"
said ACCC Chair Gina Cass-Gottlieb.
Author's summary: Australia sues Microsoft for misleading pricing.
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