When Microsoft told customers it was jacking up the price by 45% for its office suite, it gave them two options: accept the price for the product – and it’s AI add-ons – or cancel.

According to Australia’s consumer watchdog, the tech giant allegedly failed to share that a third option was available – pay the same lower price and opt out of the AI, named Copilot, in Microsoft 365.

The Australian Competition and Consumer Commission (ACCC) has taken Microsoft to federal court on Monday alleging the company misled approximately 2.7 million Australian personal and family plan customers by failing to disclose the third option when the Microsoft 365 plans had Copilot included from 31 October 2024.

The ACCC has alleged communications with customers only presented two options: paying the highe

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