Australia Sues Microsoft Over Misleading Price Hikes
Australia is taking Microsoft to court for allegedly misleading consumers about price increases for Microsoft 365 Personal and Family subscriptions.
The Australian Competition and Consumer Commission (ACCC) claims that around 2.7 million Australians were misled by AI-related price hikes for these subscriptions.
In November 2024, Microsoft increased prices for Microsoft 365 Personal and Family plans due to the addition of Copilot features.
- Consumers could keep their current pricing by switching to new "classic" plans.
- However, this option was not clearly communicated, denying customers the chance to make informed decisions.
"We're concerned that Microsoft's communications denied its customers the opportunity to make informed decisions about their subscription options, which included the possibility of retaining all the features of their existing plan without Copilot and at the lower price,"
said ACCC Chair Gina Cass-Gottlieb.
Author's summary: Australia sues Microsoft for misleading consumers.