Australia’s consumer watchdog is suing Microsoft over allegations it misled 2.7 million Aussies over prices for its Microsoft 365 subscriptions.

The ACCC has commenced proceedings in the Federal Court, alleging that since October 2024, Microsoft Australia has misled 365 personal and family plan subscribers who may have suffered “economic harm”.

The case is centred on the tech giant’s communications with those subscribers with auto-renewal.

In two emails and a blog post it informed them that they had to either accept the integration of its AI assistant Copilot — and pay more for the plan — or cancel their subscription.

The ACCC says this was misleading because a third option was not disclosed to Microsoft’s customers, the ability to retain Microsoft 365, without Copilot, at the previous

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