Microsoft has been dragged to court by the consumer watchdog for allegedly misleading millions of Australians through a deceptive marketing tactic that imposed “economic harm” on them.

The Australian Competition and Consumer Commission (ACCC) on Monday said Microsoft had misled customers when communicating its subscription options and price increases for Microsoft 365.

The tech giant allegedly told customers they must accept the integration of its AI assistant Copilot and pay higher prices or cancel their subscription.

Microsoft’s information to customers was false or misleading, the ACCC argues, because users could continue using their current plan which did not have Copilot and was 45 per cent cheaper than the new plan.

Customers could only access this by selecting “cancel subscripti

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