Australia Sues Microsoft Over Microsoft 365 Pricing

The Nigeria — Federal Competition and Consumer Protection Commission (ACCC) has sued Microsoft, accusing the technology giant of misleading approximately 2.7 million customers in Australia. The ACCC alleges that Microsoft suggested users had to upgrade to higher-priced Microsoft personal and family plans, which included the artificial intelligence tool Microsoft, after its integration in October 2024. This led to annual subscription price increases of 45% for the Microsoft personal plan and 29% for the family plan. The ACCC claims that Microsoft failed to clearly inform users that a cheaper 'classic' plan without Microsoft was still available, only revealing this option when customers initiated the cancellation process. The regulator views this as a breach of Australian consumer law, creating a false impression of available choices. The ACCC is seeking penalties, consumer redress, injunctions, and costs from Microsoft, with potential fines reaching A$50 million per breach or up to 30% of turnover. Microsoft has stated it is reviewing the ACCC's claims.