Microsoft Apologizes to Australian Customers Over Subscription Pricing

Microsoft refunds 2.7 million Australians misled into adopting its AI product, Copilot, following action from the ACCC.

Microsoft Apologizes to Australian Customers Over Subscription Pricing

By Paul V. Young – TheNationWeek.Com | November 6, 2025

Microsoft has issued an apology to Australian customers following allegations by the Australian Competition and Consumer Commission (ACCC) that it misled them regarding the renewal of their Office 365 subscriptions.

The ACCC launched proceedings in federal court, accusing Microsoft of concealing the existence of a “classic” plan without AI integration, allegedly pushing users toward more expensive subscriptions featuring the Copilot AI assistant.

ACCC Chair Gina Cass-Gottlieb stated that Microsoft’s communication “denied its customers the opportunity to make informed decisions about their subscription options,” potentially leading them to pay more for features they didn’t need.

The ACCC is seeking penalties and consumer redress, with Microsoft facing a maximum penalty of $50 million.

In response, Microsoft has begun contacting affected customers via email.

A company spokesperson acknowledged that the company “could have been clearer about the availability of a non-AI-enabled offering” when pricing changes were introduced in October 2024.

“In hindsight, we could have been clearer about the availability of a non-AI-enabled offering with subscribers, not just to those who opted to cancel their subscription,” the spokesperson stated.

“We fell short of our standards here, and we apologize. We will learn from this and improve.”

The email to subscribers has expressed regret for the lack of clarity, provides details about lower-priced alternatives without AI, and offers refunds to eligible subscribers who wish to switch.

Microsoft Australia faces court action for allegedly misleading 2.7 million Australians into buying a more expensive subscription plan that includes its AI bot Copilot.

Customers with Microsoft Office 365 subscriptions are advised to monitor their email for further communication from Microsoft and take appropriate action to ensure they are on the correct plan and receive any applicable refunds.