- Australian regulator accuses Microsoft of hiding the "Classic" option without Copilot at the previous price.
- Microsoft 365 Personal and Family price increases of up to 45% after integrating Copilot.
- The ACCC is seeking injunctions, compensation, and fines with very high limits.
- Microsoft says it is reviewing the case and prioritizing transparency and cooperation.
The Australian consumer authority has taken the Redmond company to court for allegedly mislead after integrating Copilot into its subscription plans. The research maintains that Customer communications did not clearly reflect all available alternatives and that Subscribers with automatic renewals were pressured to accept price increases or cancel.
At the center of the case is the Existence of a “Classic” option that allowed you to keep the previous plan without the AI assistant and at the previous cost, while users were moved to pay more for the Copilot plan or unsubscribe. The regulator believes that this third option was not presented transparently..
What is the Australian regulator accusing Microsoft of?
According to the Australian Competition and Consumer Commission (ACCC), messages sent by Microsoft—including emails and a blog post—made it seem like Microsoft customers were automatic renewal They had to accept Copilot integration at a higher price or cancel their subscription..
The ACCC alleges that This information was incomplete because there was a “third way”: the Classic plans, which maintained the benefits of the previous plan without Copilot and at the old price. Furthermore, it states that this option was made visible only in advanced stages of the cancellation process, which would have limited consumers' ability to make informed decisions.
The figures circulating in the market point to significant increases in domestic plans: the annual of Microsoft 365 Personal would have passed from 109 to 159 Australian dollars, as well as the Family from 139 to 179 Australian dollars, which in some cases means increases of up to 45%.
The authority is seeking sanctions, court orders, and compensation for those affected. Under current Australian regulations, Fines for companies can reach the highest of these thresholds: 50 million Australian dollars, three times the profit obtained or up to 30% of the turnover in Australia during the period of infringement, with the aim of ensuring that non-compliance with the law does not become a simple operating cost.
What's changing in Microsoft 365 and why Copilot integration is annoying
Copilot adds generative AI capabilities to Microsoft 365 apps, along with other AI tools such as Bing Video Creator from Microsoft, but its arrival has been linked to a repositioning of prices and packages. The ACCC considers that The problem is not so much the improvement itself, but how the alternatives were communicated., presenting integration and upgrade as inevitable to continue with the service.
Industry reports have been indicating for months that, as an alternative, there were "Classic" plans to maintain the service without the new assistant. However, That possibility would have been difficult to locate for the average user., which fuels the thesis of a lack of transparency in a product that is essential to many homes and small businesses.
For customers who rely on Word, Excel, Outlook, or OneDrive daily, the perception that not all options were presented —and that the decision meant paying more or losing access— It creates distrust and friction in a basic productivity service..
Possible sanctions and Microsoft's reaction
On the legal level, the case It may set a precedent for how price increases are communicated. associated with functions of significant sanctionsIf the allegations are upheld, the court could impose significant sanctions under the maximum criteria provided by Australian law.
For its part, the company assures that it is thoroughly reviewing the allegations and that transparency and consumer trust are internal priorities. Microsoft has also expressed its willingness to cooperate with the regulator. to ensure that their practices comply with legal and ethical standards.
Keys for consumers and possible effects in Europe
For users in Spain and the rest of Europe, this case reinforces the importance of carefully reviewing renewal notices and always looking for any continuity options without new features at the previous price. When there are significant changes to a plan, the provider must explain them clearly and without misleading anyone.
In the EU, Consumer authorities closely monitor transparency in commercial communications and subscription practices, an area where the arrival of AI could add complexity. What happens in Australia could serve as a reference for future actions in Europe if similar patterns are detected in the way AI, packages, and prices are reported.
The Australian litigation raises a question mark between product innovation with Copilot and the obligation to provide unambiguous information: The ACCC maintains that the "Classic" route was hidden, while Microsoft defends its commitment to transparency.The court ruling will clarify whether the integration of Copilot in Microsoft 365 was adequately communicated and what standards large technology companies must now follow when introducing price changes linked to new capabilities.
I am a technology enthusiast who has turned his "geek" interests into a profession. I have spent more than 10 years of my life using cutting-edge technology and tinkering with all kinds of programs out of pure curiosity. Now I have specialized in computer technology and video games. This is because for more than 5 years I have been writing for various websites on technology and video games, creating articles that seek to give you the information you need in a language that is understandable to everyone.
If you have any questions, my knowledge ranges from everything related to the Windows operating system as well as Android for mobile phones. And my commitment is to you, I am always willing to spend a few minutes and help you resolve any questions you may have in this internet world.