Australia's competition regulator sued Microsoft today, accusing it of misleading millions of customers into paying higher prices for its Microsoft 365 software after bundling it with AI tool Copilot. From a report: The Australian Competition and Consumer Commission alleged that from October 2024, the technology giant misled about 2.7 million customers by suggesting they had to move to higher-priced Microsoft 365 personal and family plans that included Copilot.

After the integration of Copilot, the annual subscription price of the Microsoft 365 personal plan increased by 45% to A$159 ($103.32) and the price of the family plan increased by 29% to A$179, the ACCC said. The regulator said Microsoft failed to clearly tell users that a cheaper "classic" plan without Copilot was still available.

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