Microsoft Facing Huge Lawsuit Involving Millions of Citizens over Unfair Software Pricing - Here's What We Know

Why It Matters

The regulator is seeking penalties, injunctions and consumer redress, with maximum fines above AU$50 million per breach, raising the prospect of significant payouts and reputational damage for Microsoft amid other global licensing disputes.

Summary

Australia’s competition regulator has sued Microsoft, alleging it misled up to 2.7 million Microsoft 365 Personal and Family subscribers by pushing auto‑renewals after adding Copilot and failing to disclose a lower‑priced “Classic” option. The ACCC says emails and a blog post noted price rises—Personal up 45% (AU$109→AU$159) and Family up 29% (AU$139→AU$179)—but did not inform customers of the undisclosed alternative that preserved prior features and pricing. The regulator is seeking penalties, injunctions and consumer redress, with maximum fines above AU$50 million per breach, raising the prospect of significant payouts and reputational damage for Microsoft amid other global licensing disputes.