The Australian Competition and Consumer Commission (ACCC) has filed a lawsuit against Microsoft, alleging that the tech giant misled 2.7 million customers by pushing them into costlier Microsoft 365 plans bundled with its AI assistant, Copilot. The regulator claims Microsoft implied users had to upgrade to new plans—priced up to 45% higher—when cheaper “classic” plans without Copilot were still available.
According to the ACCC, the integration of Copilot in late 2024 led to subscription increases from A$109 to A$159 for personal plans and A$139 to A$179 for family plans, while users were not clearly informed about retaining older, cheaper options. The regulator argues that these omissions breached Australian consumer law, creating a misleading impression of limited choices.
Hidden Options and ‘Dark Patterns’
The watchdog said customers discovered the cheaper plans only when attempting to cancel their subscriptions, suggesting Microsoft used dark pattern design tactics to steer users toward higher-priced products. The ACCC stated that Microsoft’s official communication—including email notices and blog posts—failed to mention the availability of the “classic” tier, instead telling users that price increases would apply automatically at renewal.
The ACCC is now seeking penalties, injunctions, and consumer redress, with potential fines of up to A$50 million per breach or 30% of Microsoft’s adjusted turnover during the violation period. Microsoft has said it is reviewing the regulator’s claims in detail and has yet to issue a formal legal response.
A Global Test Case for AI Monetisation
Legal experts see the case as a pivotal moment in how governments will regulate the commercial rollout of AI-integrated products. As companies increasingly bundle AI features into existing services, questions around transparency, pricing fairness, and user consent are coming under the spotlight.
Analysts say this lawsuit could set a global precedent, forcing tech majors to more clearly separate optional AI add-ons from core software offerings. It also underscores growing consumer unease around the rapid push to monetise artificial intelligence through subscription models.
