Australia sues Microsoft, says Copilot rollout misled 2.7 million customers on pricing

  • The Australian regulator has filed a Federal Court case against Microsoft and its Australian unit, alleging they misled about 2.7 million customers over Microsoft 365 pricing and plan changes after integrating Copilot AI.
Microsoft

Australia’s competition regulator has launched court action against Microsoft Corp. and its local subsidiary, accusing the tech giant of misleading around 2.7 million customers over subscription pricing and options.

The Australian Competition and Consumer Commission (ACCC) said it filed proceedings in the Federal Court, alleging Microsoft failed to properly inform users about price changes and plan differences after integrating its AI assistant, Copilot, into Microsoft 365 subscription packages.

The regulator claims Microsoft’s conduct may have caused customers to pay more than necessary or stay on higher-cost plans without clear disclosure of alternatives.

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While unlikely to significantly affect Microsoft’s global earnings, the proceedings could shape how large tech firms disclose pricing changes in Australia and beyond.

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