Microsoft is accused by the competition watchdog of misleading 2.7 million of its Australian customers about pricing options for its Microsoft 365 plans after bundling its AI agent Copilot into subscriptions.

The Australian Competition and Consumer Commission (ACCC) commenced legal action against Microsoft in the NSW Federal Court.

The company allegedly misled customers to think they were required to pay extra for Copilot, when an option not to use Copilot and avoid the additional charges was available.

The ACCC alleges that from late October last year, Microsoft told customers on auto-renewing subscription plans that the only way to keep using M365 was to accept the extra costs, or otherwise cancel their service.

The commission alleges Microsoft deliberately concealed a classic subscr

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