Microsoft Accusedly Misleads Over Copilot Prices

Australian regulators have taken Microsoft to court, alleging the company misled around 2.7 million Microsoft 365 users by implying they had to accept a higher-priced AI-powered plan or cancel altogether, while failing to reveal a cheaper alternative that was still available.

What Happened and Why?

The case focuses on Microsoft’s handling of its consumer subscription services, i.e., Microsoft 365 Personal and Family plans, used by millions of households for applications such as Word, Excel, PowerPoint, Outlook and OneDrive. These plans are sold on monthly or annual auto-renewing subscriptions, making them a cornerstone of many users’ digital routines.