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Microsoft facing huge lawsuit involving millions of citizens over unfair
software pricing - here's what we know

Date:
Mon, 27 Oct 2025 11:24:00 +0000

Description:
Australian watchdog accuses Microsoft of not offering users the option of
cheaper plans.

FULL STORY

Microsoft is being sued by the Austrialian consumer watchdog for allegedly
misleading millions of users regarding its Microsoft 365 platform. 

The Australian Competition & Consumer Commission (ACCC) says the company
advised users stick to an auto-renewal deal on their Microsoft 365 package,
despite cheaper or more useful offers being available. 

As many as 2.7 million users of Microsoft 365 Personal and Family plans could
have been affected, and could now be in for a share of a payout if the case 
is successful.

Microsoft 365 pricing lawsuit 

The ACCC complaint alleges Microsoft failed to offer appropriate advice to
users after adding its Copilot AI platform into the 365 platform in Australia
back in October 2024. 

Users with a Microsoft 365 Personal of Family plan were allegedly told this
integration of Copilot would mean they would have to pay a higher price if
they wanted to keep their existing subscription. 

However in its complaint, the ACCC says Microsoft provided users with "false
or misleading" information, because there was an undisclosed third option -
the Microsoft 365 Personal or Family Classic plans, which allowed subscribers
to retain the features of their existing plan, without Copilot, at the
previous lower price. 

The ACCC notes the company did send out two emails and published a blog post
informing auto-renewal subscribers of the new integration, including
information on the price prices - but apparently failed to mention 
alternative plans were available, and the users themselves would have no way
of discovering their existence unless they actively started the process of
cancelling their subscription. 

The complaint notes that these were not small price rises either - as the
annual subscription price of the Microsoft 365 Personal plan increased by 45%
from AU$109 to AU$159, and the Microsoft 365 Family plan increased by 29% 
from AU$139 to AU$179. 

The Microsoft Office apps included in 365 subscriptions are essential in many
peoples lives and given there are limited substitutes to the bundled package,
cancelling the subscription is a decision many would not make lightly," noted
ACCC Chair Gina Cass-Gottlieb said. 

Were concerned that Microsofts communications denied its customers the
opportunity to make informed decisions about their subscription options, 
which included the possibility of retaining all the features of their 
existing plan without Copilot and at the lower price, Ms Cass-Gottlieb said. 

We believe many Microsoft 365 customers would have opted for the Classic plan
had they been aware of all the available options. 

The ACCC says it is seeking orders "including penalties, injunctions,
declarations, consumer redress, and costs", and notes the maximum penalty for
each breach of the Australian Consumer Law is above $50 million, meaning
Microsoft could be facing an expensive payout if the case is successful. 

TechRadar Pro has contacted Microsoft for comment. 

The company is also facing a multibillion-pound legal claim in the UK over
alleged anticompetitive behavior and unfair software licensing practices, and
is currently engaged in a long-running dispute with ValueLicensing over
selling pre-owned Office and Windows licenses .

======================================================================
Link to news story:
https://www.techradar.com/pro/microsoft-facing-huge-lawsuit-involving-millions
-of-citizens-over-unfair-software-pricing-heres-what-we-know

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