Australian Regulator Accuses Microsoft of Deception
Australia’s consumer watchdog has initiated legal proceedings against Microsoft, alleging the tech giant misled approximately 2.7 million customers about the need to subscribe to its AI assistant, Copilot, as part of its Microsoft 365 suite.
Details of the ACCC’s Claims
The Australian Competition and Consumer Commission (ACCC) claims Microsoft deliberately concealed the existence of an AI-free Microsoft 365 plan. The ACCC asserts that Microsoft led customers to believe they were required to subscribe to the AI-powered
Copilot feature, despite knowing a significant number of customers were hesitant about adopting artificial intelligence within their workflow.
- Scope of Allegation: The ACCC estimates that 2.7 million Australian customers were affected by Microsoft’s communication surrounding its 365 product suite.
- Nature of Misleading Conduct: The watchdog contends customers were not properly informed about their ability to choose a version of the 365 suite that did not include Copilot.
- Motivation: The regulator alleges Microsoft was aware customers had reservations regarding integration of artificial intelligence technologies and sought to benefit from this uncertainty.
Potential Impact and Industry Context
This high-profile case underscores continued regulatory scrutiny confronting global technology firms as they integrate artificial intelligence tools into mainstream products. The ACCC’s action against Microsoft highlights concerns about transparency and customer choice in an era of rapid AI deployment.
What’s Next?
The court proceedings could hold significant implications for the disclosure obligations of major software providers, particularly regarding AI-related features and customer autonomy in tech subscriptions.
For more detailed coverage of the allegations against Microsoft, see the original article at Reuters.
