Microsoft has apologised to customers and offered refunds days after the consumer watchdog launched legal action against the tech giant, alleging it misled 2.7 million Australians over subscription costs so they would remain on more expensive plans.

Last week, the Australian Competition and Consumer Commission (ACCC) began proceedings in the Federal Court against Microsoft Australia and its parent company, Microsoft Corporation , over how it communicated price increases to customers of its Copilot AI assistant and Microsoft 365 plans, including software such as Word, Excel and PowerPoint.

The ACCC alleged that since October 31, 2024, Microsoft had told subscribers of its 365 Personal and Family plans with auto-renewal enabled that to maintain their subscription, they “must accept the i

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