Oct. 27 (UPI) — Australia’s consumer authority accused Microsoft of “deliberately” hiding subscription information from its Australian customer base.
On Monday, the Australian Competition and Consumer Commission sued the software giant for allegedly misleading more than 2.5 million Australian users over subscriptions to Microsoft 365.
“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,” stated ACCC Chair Gina Cass-Gottlieb.
Australia’s CCC launched its Microsoft inquiry after reports that Microsoft allegedly misled its customers about price increases and options over subscriptions following the integration of its “Copilot” AI tool.
It alleged that Microsoft told users a higher price must be paid to keep subscriptions, which was to include Microsoft’s Copilot, or be forced to cancel.
According to Cass-Gottlieb, the ACCC will seek a penalty to demonstrate that non-compliance with Australia’s consumer laws was “not just a cost of doing business.”
Microsoft said it was reviewing the Australian government’s claim, adding that consumer trust and transparency were “top priorities.”
Last year in December, British digital rights advocacy groups launched a billion-dollar lawsuit against Microsoft, alleging it overcharged clients of its Windows Server software used in cloud computing.
The United States, Canada and Australia partnered over the summer in a global probe to identify hackers who attacked a security flaw in Microsoft software to internationally infiltrate agencies and businesses.
In May, U.S.-based Microsoft revealed it was axing roughly 6,000 jobs in its global workforce.
“We remain committed to working constructively with the regulator and ensuring our practices meet all legal and ethical standards,” a Microsoft spokesperson told ABC News in Australia on Monday.