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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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