Microsoft Sued for Allegedly Misleading Consumers in Australia

Australia’s consumer watchdog has taken Microsoft to court, accusing the tech giant of misleading nearly three million customers over recent price increases to its office software.

On Oct. 27, the Australian Competition and Consumer Commission (ACCC) announced that it has filed a lawsuit in the Federal Court against Microsoft Australia and its U.S. parent company, Microsoft Corporation.

The ACCC alleged that Microsoft had misled around 2.7 million Microsoft 365 users since Oct. 31, 2024, when the company informed them of a significant price increase to their subscription plans via email communications.

Specifically, the annual subscription price of the Microsoft 365 Personal plan jumped 45 percent from $109 (US$71) to $159. The Microsoft 365 Family option, which allows up to six users to use apps such as Word, Excel, PowerPoint, and Outlook, saw a 29 percent price increase from $139 to $179 a year.

The new prices automatically took effect when consumers’ subscriptions were renewed.
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