Australia Accuses Microsoft of Misleading Customers Over AI Tool Copilot

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Australia Accuses Microsoft of Misleading Customers Over AI Tool Copilot
Photo: Jason Redmond/AP/TT

The Australian competition authority accuses Microsoft of having misled customers so that they will buy their AI tool Copilot.

According to the indictment, Microsoft is alleged to have sent out notices to its customers who subscribe to Microsoft 365. Approximately 2.7 million customers are said to have been affected since October 2024.

Microsoft is alleged to have written that customers must either pay between 29 and 45 percent extra to keep their subscription – with Copilot – or cancel their subscription.

Only when customers chose to terminate did a third option appear: to keep their current subscription, without access to Copilot.

Microsoft deliberately withheld the option to keep the classic subscriptions in its communication until customers had initiated cancellation in order to increase the number of consumers with Copilot-integrated subscriptions, says Gina Cass-Gottlieb at the agency.

According to Cass-Gottlieb, the lack of alternatives to the so-called office package, which is included in Microsoft 365, may be a reason why many consumers are reluctant to cancel their subscriptions.

Microsoft has not commented on the allegations. If the company is convicted, it may be forced to pay fines in the multi-million class.

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By TTEnglish edition by Sweden Herald, adapted for our readers

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