Archive · 27 Oct 2025
Australia's ACCC Sues Microsoft Over Misleading Subscription Practices
The Australian government is suing Microsoft.
They believe Microsoft tricked customers into paying more for new Microsoft 365 subscriptions that included an AI assistant called Copilot.
Microsoft made it seem like users had to upgrade to these more expensive versions, but there were cheaper plans available without Copilot.
The government says Microsoft did not clearly show the cheaper options.
If the government wins, Microsoft might have to pay a fine and provide compensation.
ACCC sued Microsoft over allegedly misleading 2.7 million Australian customers.
Microsoft is accused of implying users must upgrade to include Copilot.
The price of the Personal plan increased by 45%, Family by 29% after Copilot integration.
Cheaper 'classic' plans without Copilot were still available.
ACCC seeks penalties, injunctions, consumer redress, and costs.
- Who
- Australian Competition and Consumer Commission (ACCC) vs. Microsoft
- What
- Lawsuit alleging misleading statements regarding Microsoft 365 subscriptions.
- When
- Since October 2024
- Where
- Australia
- Why
- Microsoft allegedly failed to clearly disclose 'classic' plan options to encourage upgrades to Copilot-integrated plans.
- Plaintiff
- Australian Competition and Consumer Commission (ACCC)
- Defendant
- Microsoft Australia Pty Ltd, Microsoft Corp.
- Allegation
- Misleading consumers about Microsoft 365 subscription plans
- Affected Subscribers
- Approximately 2.7 million Australians
- Subscription Plans
- Microsoft 365 Personal and Family
- Price Increase
- Personal plan: 45%; Family plan: 29%
- Action
- Filed a suit in the Federal Court
- Potential Penalties
- Financial penalties, consumer redress, injunctions, and costs
Sources
Australia Sues Microsoft Over Misleading AI Offer
Microsoft ‘tricked users into pricier AI-linked 365 plans,’ says Australian watchdog; files lawsuit
Microsoft Sued For "Misleading" 2.7 Million Australians About Subscriptions
Australia sues Microsoft over AI-linked subscription price hikes
