Australia Sues Microsoft Over Alleged AI-Driven Price Misleading

Canberra – The Australian government today launched legal action against Microsoft, alleging the tech giant misled 2.7 million Australian customers regarding the pricing of its AI-powered Microsoft 365 Copilot subscription.

The Australian Competition and Consumer Commission (ACCC) filed a lawsuit in the Federal Court, claiming Microsoft made false or misleading representations about the cost of Copilot, leading customers to believe it was included in their existing Microsoft 365 subscriptions. The ACCC alleges that between February and September 2024, Microsoft advertised Copilot as being available to eligible customers without clearly disclosing the additional cost. This lack of transparency potentially resulted in unintended charges for users who believed the feature was part of their current plan.

According to the ACCC, many customers were unaware they needed to separately purchase Copilot access, with some reporting unexpected charges appearing on their bills. The lawsuit seeks penalties, declarations, and corrective orders from Microsoft. This case highlights growing scrutiny of how artificial intelligence features are being bundled and priced by technology companies. For more information on consumer rights, visit the Australian Competition and Consumer Commission website.

The ACCC believes Microsoft’s actions may have violated Australian Consumer Law. The outcome of this case could set a precedent for how tech companies market and price AI-integrated services, impacting consumer protection in the rapidly evolving technology landscape. Further details on the ongoing legal proceedings can be found in our coverage of AI regulation and consumer rights.

The ACCC stated it is continuing its investigation and will provide further updates as the case progresses.