The consumer watchdog is suing Microsoft for allegedly misleading around 2.7 million Australians. Photo: Bianca De Marchi/AAP PHOTOS

Tech giant Microsoft is facing hefty fines for allegedly misleading millions of Australian customers by trying to convince them to pay more than needed for an AI upgrade.

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Australia's consumer watchdog has taken the US company to court for allegedly leading customers to believe they must either pay extra subscription fees when its AI assistant Copilot was integrated into their package or cancel altogether.

But subscribers also had the choice of maintai

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