Australian Authority Sues Microsoft
The Australian Competition and Consumer Commission (ACCC) announced on Monday that it is suing Microsoft for a “misleading” offer involving its AI assistant, Copilot.
The tech giant is accused of providing “false or misleading” information to approximately 2.7 million Australians who automatically renewed their subscription to Microsoft 365, which includes a suite of Office applications.
The ACCC clarified in a statement that the company presented customers with two options: either pay an additional amount for an offer that includes Copilot, or cancel all their subscriptions.
According to the ACCC, there is a third option, but it only appears when a subscriber initiates the cancellation process. This option allows users to keep what is termed the “classic offer,” which excludes Copilot and comes at the base price.
Copilot is a digital assistant powered by AI that helps users with search and text tasks.
The lawsuit has been filed in the Federal Court against Microsoft Australia and its parent company, Microsoft Corp.
The ACCC accused Microsoft of engaging in similar practices since October 31, 2024, pointing out that subscriptions with Copilot are priced 29% to 45% higher than those without.
The American tech giant could face penalties of $30 million or more for each violation.
