Microsoft sued for doing the sneaky-sneaky with its AI subscriptions down under
Microsoft is facing an ACCC lawsuit for allegedly misleading millions of Australians into paying more for Microsoft 365 after bundling its Copilot AI, in what regulators call a “forced upgrade” scheme.
With users complaining about big tech companies ushering in AI without any input, Microsoft has doubled down and continued the trend.
That’s because in Australia, the Australian Competition and Consumer Commission (ACCC) is up in arms after Microsoft’s 365 (office suite) plan increased in price by 45%, including a forced AI integration.
Crucially, the ACCC has deemed that Microsoft purposefully excluded the cheaper, AI-free alternative from its discourse with customers.
The grumble has occurred because subscribers were not allowed to opt out of the AI option and continue using it regardless.
Tellingly, the scope of the alleged deception is vast – it affects 2.7 million Australian users whose annual plan rose from AUD$109 to AUD$159 (roughly USD$72 to USD$104).
This, in turn, could mean that fines could reach a staggering AUD$50 million (USD$33 million), depending on how the case goes in the courtroom.
Two emails were sent to customers informing them of the price hike, and a blog post followed soon after. However, it wasn’t until the cancellation screen that patrons were made aware that they could carry on with the cheaper price.
ACCC Chair Gina Cass-Gottlieb adroitly presented the legal case, revealing how sneaky these corporate iterations have been.
We will allege in court that Microsoft deliberately omitted reference to the classic plans in its communications and concealed their existence until after subscribers initiated the cancellation process to increase the number of consumers on more expensive Copilot-integrated plans.
The ACCC has also pressured Microsoft to be more transparent in its communications with customers and to refund oblivious customers wherever possible.
Microsoft has commented that it “values consumer trust and transparency” and will work with the regulator.
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