Microsoft is being sued by the Australian Competition Authority for concealing less expensive non-AI options
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| Microsoft allegedly disclosed the less expensive plan after customers started cancelling their subscriptions, according to the complaint |
Australia has filed a lawsuit against Microsoft for allegedly deceiving its Microsoft 365 customers there. The Windows manufacturer is being sued by the Australian Competition and Consumer Commission (ACCC) for allegedly increasing the cost of its subscription plans after integrating Copilot with the service and neglecting to notify customers about a less expensive option. On October 31, 2024, the Redmond-based software behemoth announced the price increase nationwide, advising customers to either pay the increased amounts or terminate their membership.
Microsoft is being sued by Australia for deceiving subscribers
The ACCC said in a press statement that it has filed a lawsuit against Microsoft Australia and its parent firm, Microsoft Corp., in the Federal Court. The price increase for Microsoft 365 Personal and Family subscriptions is the main focus of the case.Following the integration of its AI chatbot with the service, now known as Microsoft 365 Copilot, the business raised the Personal plan's price by 45%, from AUD 109 (about Rs. 6,300) to AUD 159 (approximately Rs. 9,200). Additionally, the cost of the Family plan increased by 29% to AUD 179, or around Rs. 10,300.
The primary accusation against the corporation is that it instructed its current subscribers—an estimated 2.7 million in the nation—to either accept the increased costs or terminate their subscriptions when telling them via two emails and a blog post. The tech giant failed to disclose a third alternative, which was to keep the membership at the same cost without any AI features, which is why this is being referred to as deceptive.
"All businesses need to provide accurate information about their services and prices," said Gina Cass-Gottlieb, Chair of the ACCC, "and we allege that Microsoft's two emails to existing subscribers and the blog post were false or misleading as they conveyed that consumers had to accept the more expensive Copilot-integrated plans, and that the only other option was to cancel." If you don't, you run the danger of breaking the Australian Consumer Law.
For each violation of the Australian Consumer Law, the ACCC emphasized that a company may be fined up to AUD 50 million (approximately Rs. 289 crore), three times the total benefits to which the company could reasonably be attributed, or 30% of its adjusted turnover during the violation period.
#australia #microsoft #copilot #newstainmentora
