The Australian Competition and Consumer Commission (ACCC) has filed a lawsuit against Microsoft , accusing the company of misleading more than 2.7 million customers into paying higher prices for its Microsoft 365 subscriptions after bundling them with its new artificial intelligence tool, Copilot.

According to the ACCC, Microsoft informed users in late 2024 that their 365 Personal and Family plans would automatically include Copilot — but with a steep price jump.

The annual cost of the Personal plan rose by 45%, from A$109 to A$159, while the Family plan increased by 29%, from A$139 to A$179.

Regulators say that while Microsoft promoted these upgraded plans, it failed to clearly disclose that a cheaper "classic" version without Copilot was still available, Reuters reported.

ACC

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