(Reuters) -Australia’s competition regulator on Monday sued Microsoft, accusing it of misleading customers into paying higher prices for Microsoft 365 subscriptions after bundling its AI assistant Copilot into personal and family plans.

The Australian Competition and Consumer Commission (ACCC) alleged that from October 2024, the technology giant misled about 2.7 million customers by suggesting they had to move to higher-priced Microsoft 365 personal and family plans that included Copilot.

After the integration of Copilot, the annual subscription price of the Microsoft 365 personal plan increased by 45% to A$159 ($103.32) and the price of the family plan increased by 29% to A$179, the ACCC said.

The regulator said Microsoft failed to clearly tell users that a cheaper “classic” plan witho

See Full Page