The Australian Competition and Consumer Commission (ACCC) has filed a lawsuit against the technology giant Microsoft, accusing the company of misleading millions of users regarding the prices of its programs after integrating the new artificial intelligence tool Copilot. The authority claims that recent marketing operations contributed to pushing Microsoft customers towards higher-priced plans that lack transparency and clarity, which sparked widespread controversy in the community. Technological.
According to a report by Reuters, the authority claimed that Microsoft misled approximately 2.7 million customers starting from October 31, 2024. Microsoft was accused that Microsoft 365 Personal and Family plans that include Copilot were significantly more expensive, and the authority called for the need to combat these unfair practices in the market. She indicated that they would not hesitate to take the case to court to demand an end to these methods.
Gina Cass Gottlieb, chair of the ACCC, explained during a press conference that Microsoft had failed to mention less expensive options, as evidence showed that the company removed any reference to traditional plans, leading consumers to believe that the available options were limited only to enhanced plans. This behavior, she says, has led to an increase in the number of sign-ups for the most expensive plans.
The authority continued that the cost of the annual Microsoft 365 Personal plan increased by 45% after the introduction of Copilot, while the Family plan rose by 29%. Microsoft was accused of providing misleading information to subscribers, as the messages were that the cheaper options were no longer available, creating the impression that the higher plan was the only option.
The authority noted that Microsoft’s actions violated Australian consumer protection laws, as it did not disclose important information that would have helped customers make informed purchasing decisions. Microsoft may be subject to fines of up to 50 million Australian dollars for each violation, and if the violations are confirmed, the fines may exceed 30% of the company’s revenues during the period of the violation.
The case continues to take center stage in tech news, and Microsoft’s legal battle further reflects the growing pressure on major technology companies to be more transparent in their marketing practices and make consumer rights a key part of their business strategies.
