Australia's Competition Watchdog Accuses Microsoft of Misleading Millions of Customers

Microsoft's integration of its AI assistant, Copilot, into its Microsoft 365 Personal and Family plans has been met with accusations from Australia's competition watchdog, the ACCC. The watchdog alleges that Microsoft misled approximately 2.7 million customers into paying higher prices for their plans by failing to inform them of the existence of "Classic" plans, which did not include Copilot. This has resulted in increased subscription prices, with the annual subscription price of the Microsoft 365 Personal plan increasing by 45% and the Microsoft 365 Family plan by 29%.

Key Takeaways:

• The ACCC alleges that Microsoft misled approximately 2.7 million customers into paying higher prices for their Microsoft 365 Personal and Family plans.
• The watchdog claims that Microsoft failed to inform customers of the existence of "Classic" plans, which did not include Copilot, until they initiated the cancellation process.
• The annual subscription price of the Microsoft 365 Personal plan increased by 45% from $109 to $159.
• The annual subscription price for the Microsoft 365 Family plan increased by 29% from $139 to $179.
• The ACCC believes that many customers would have opted for the Classic plan if they had been aware of all available options.
• The ACCC has accused Microsoft of breaching the Australian Consumer Law by providing false or misleading information about its services and prices.
• The integration of Copilot has resulted in increased subscription prices for millions of customers.

Statistics:

• 2.7 million: The approximate number of customers Microsoft is accused of misleading.
• 45%: The increase in annual subscription price for the Microsoft 365 Personal plan from $109 to $159.
• 29%: The increase in annual subscription price for the Microsoft 365 Family plan from $139 to $179.
• 3: The number of pieces of communication central to the ACCC's case against Microsoft.

Sources:

• "Microsoft accused of misleading 2.7m customers over Copilot changes." The Australian Financial Review, 27 October 2024.
• "Australian Competition and Consumer Commission v Microsoft Australia Pty Ltd (2024)." ACCC website, 27 October 2024.