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Australia Takes Microsoft to Court, Says It Misled 2.7 Million Customers

The ACCC alleges Microsoft concealed a cheaper subscription option, pressuring 2.7 million Australians to pay 29-45% more for AI-enabled Microsoft 365 plans.

  • Australia's consumer watchdog, the ACCC, is suing Microsoft for allegedly misleading 2.7 million Australians concerning Microsoft 365 subscriptions.
  • The ACCC claims that since October 31, 2024, Microsoft told subscribers they must accept a higher price for Copilot or cancel their subscription.
  • The agency alleges Microsoft did not disclose the option to retain their current plans without Copilot at lower prices, misleading customers.
  • Gina Cass-Gottlieb, chair of the ACCC, stated that many customers would have chosen the Classic plan if informed of all options.
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Microsoft allegedly forced its Australian customers to purchase the AI tool Copilot – and thus made them pay more. This is claimed by the country's competition authority, which is now suing the tech giant.

·Stockholm, Sweden
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Mediaweek broke the news in on Sunday, October 26, 2025.
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