Microsoft is facing Federal Court action after the Australian Competition and Consumer Commission (ACCC) accused the tech giant of misleading around 2.7 million Australian Microsoft 365 users over subscription options and price increases tied to its AI assistant Copilot.

According to the ACCC, since October 2024 Microsoft informed customers on auto-renewing Personal and Family 365 plans that they must accept Copilot integration, along with the accompanying price hike, or cancel their subscription altogether.

However, the regulator claims Microsoft failed to disclose the third option of ‘Classic’ plans, which retained all existing features without Copilot at the original lower price.

The Classic plans, the ACCC claims, were hidden deep within the cancellation process, appearing only afte

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