Australia’s Watchdog Says Microsoft Misled Users Into Paying More For Copilot Bundles

Benzinga

Australia’s ACCC sued Microsoft for allegedly misleading 2.7M users into pricier Microsoft 365 plans bundled with Copilot. The regulator says cheaper “classic” plans were hidden, breaching consumer law. Microsoft is reviewing the case.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Australia's competition regulator has sued Microsoft,

00:06accusing it of misleading millions of customers into paying higher prices

00:09for Microsoft 365 after bundling it with its AI tool Copilot, according to Reuters.

00:15The Australian Competition and Consumer Commission said that since October 2024,

00:21Microsoft led about 2.7 million users to believe they had to switch to more expensive personal

00:26and family plans that included Copilot. The ACCC said Microsoft raised Microsoft 365 subscription

00:34prices by up to 45% after adding Copilot and failed to clearly disclose that a cheaper,

00:40classic plan was still available. The regulator said the option was only shown during cancellation,

00:46violating consumer law. Microsoft said it is reviewing the claim.

00:49For all things money, visit Benzinga.com.

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