ACCC Files Lawsuit Against Microsoft Over Consumer Misleads
(MENAFN) Australia’s competition watchdog has launched legal action against Microsoft, accusing the tech giant of misleading millions of consumers, media reported on Monday.
The Australian Competition and Consumer Commission (ACCC) has filed a lawsuit against Microsoft Australia and its parent company, Microsoft Corporation, claiming that roughly 2.7 million Australians were misled about Microsoft 365 subscription plans.
The case centers on allegations that the American tech conglomerate misrepresented subscription options and price hikes after integrating its AI assistant, Copilot, into Microsoft 365 plans.
The ACCC said Microsoft notified certain subscribers late last year that they either had to pay more for plans including Copilot or cancel their subscriptions.
The regulator argued that Microsoft failed to inform customers that they could retain their existing plans at the original price without Copilot.
"Following a detailed investigation, the ACCC alleges that Microsoft deliberately hid this third option, to retain the old plan at the old price, in order to increase the uptake of Copilot and the increased revenue from the Copilot-integrated plans," ACCC chair Gina Cass-Gottlieb said.
Cass-Gottlieb described the alleged behavior as "very serious conduct," adding that the ACCC would be pursuing a substantial penalty.
A Microsoft spokesperson told media that the company is carefully reviewing the ACCC’s claim, emphasizing: "Consumer trust and transparency are top priorities for Microsoft."
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