Australia sues Microsoft for misleading Microsoft 365 users about Copilot subscription options

Steven

Australia sues Microsoft for misleading Microsoft 365 users about Copilot subscription options

Summary

Australia’s Competition & Consumer Commission (ACCC) has commenced legal proceedings against Microsoft, alleging the company misled Microsoft 365 Personal and Family subscribers about Copilot subscription choices. The ACCC says Microsoft told users they either had to accept Copilot and pay more or cancel their subscription, while omitting a third option: Microsoft 365 Personal or Family Classic plans, which preserved existing features without Copilot at the lower price. The regulator alleges Microsoft concealed the Classic option until users began cancellation, restricting informed choice. Microsoft says it is reviewing the claim and will work with the regulator.

Key Points

  • The ACCC alleges Microsoft misled millions of Microsoft 365 Personal and Family subscribers over Copilot integration and pricing.
  • There was allegedly an undisclosed “Classic” plan that retained existing features without Copilot at the prior price.
  • ACCC claims Microsoft omitted reference to the Classic plans in communications and only revealed them during cancellation flows.
  • Microsoft says consumer trust and transparency are priorities and it will review the ACCC’s claim and cooperate with the regulator.
  • The story sits alongside other regional tech developments: India’s proposed AI content labelling, China restating tech self-sufficiency goals, NZ IT body liquidation, and Alibaba Cloud winding down its VMware service.

Content summary

The article focuses on the ACCC’s case against Microsoft for alleged misleading communications around Microsoft 365 Copilot pricing and options. It outlines the regulator’s view that consumers were denied clear information about a lower-cost Classic plan that excluded Copilot. Microsoft issued a short statement committing to review the claim and engage with the regulator. The piece also runs through related Asia-Pacific tech briefs: India wants mandatory labelling/metadata for AI-generated content to combat deepfakes; China emphasises tech self-reliance in its next five-year plan; New Zealand’s IT professional body voted to liquidate; and Alibaba Cloud has quietly removed its VMware service from its catalogue.

Context and relevance

This case is part of wider regulatory scrutiny of how big tech bundles AI features and communicates price changes to consumers. It matters to consumers, IT admins and legal/compliance teams because it concerns transparency, contract terms and potential obligations around opt-ins and cancellations. The outcome could influence how subscription upgrades that include AI features are marketed and disclosed worldwide.

Author style

Punchy: This is a heavyweight consumer-protection action that could reshape how vendors bundle AI into mainstream SaaS. If you procure or manage Microsoft 365 or follow tech regulation, this one’s worth the deep dive.

Why should I read this?

Look — if you or your organisation pays for Microsoft 365, this affects you. The ACCC says Microsoft hid a cheaper “Classic” option so more people ended up on pricier Copilot plans. That’s a big deal for budgets, consumer rights and future AI-bundling tactics. Quick read, useful to know.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2025/10/27/asia_tech_news_roundup/