CANBERRA, 27 October 2025 – The Australian Competition and Consumer Commission (ACCC) has filed suit against Microsoft Corp., accusing the tech giant of misleading about 2.7 million Australian customers into paying higher prices for its Microsoft 365 subscriptions after integrating its AI assistant “Copilot” into premium plans.
Starting in October 2024, Microsoft increased the annual rate of its Microsoft 365 Personal plan by 45 % to A$159, and its Family plan by 29 % to A$179. The ACCC alleges that the company failed to clearly disclose the availability of a lower-cost “classic” plan without the AI-assistant functionality, the option was only revealed when subscribers sought to cancel.
The regulator contends that this approach breached Australian consumer law by creating a false impression of choice and by omitting “material information” about subscription options. As part of its case, the ACCC is seeking penalties, consumer redress, injunctions and recovery of legal costs. Each breach could attract a penalty of up to A$50 million, or greater depending on the value of any gains or the company’s turnover.
From an Asian-market vantage point, the case sends a strong message: global technology firms operating across the region must navigate not only competitiveness and innovation, but also increasing regulatory scrutiny around AI monetisation and consumer transparency. As subscription models evolve and AI features are increasingly bundled into everyday productivity software, regulatory frameworks in markets such as Malaysia, Singapore and Indonesia are likely to watch developments closely.
