Microsoft Apologizes to Australian Microsoft 365 Users Over AI Pricing
Microsoft has issued a formal apology and refund offer to its 2.7 million Australian subscribers after a lawsuit alleged that the company hid cheaper subscription options while bundling AI features with significant price hikes.
Background of the Legal Action
The apology was sent via email on Thursday, 10 days after the Australian Competition and Consumer Commission (ACCC) filed legal proceedings against Microsoft. The case focuses on the integration of the Copilot AI assistant into Microsoft 365 Personal and Family plans starting last October.
Microsoft's Response to the Lawsuit
Microsoft explained that AI capabilities were added to these subscriptions due to customer demand for advanced AI tools. However, the company admitted it “could have been clearer about the availability of a non-AI-enabled offering with subscribers.”
“Our relationship with our customers is based on trust and transparency, and we apologise for falling short of our standards,” Microsoft stated in the email.
Subscription Options Offered to Customers
- Continue with the current AI-enabled plan at $10-$12 USD (AU$16-$18) per month.
- Switch to Microsoft 365 Classic at $7-$9 USD (AU$11-$14) per month, which does not include Copilot AI.
Author's Summary
Microsoft has apologized to Australian subscribers over unclear AI pricing, offering refunds and cheaper plan options to restore trust.