- Microsoft 365 became more expensive in six APAC countries when Copilot was integrated
- Microsoft didn’t do enough to tell customers they could keep Classic (non-Copilot) plans
- Microsoft is believed to be offering refunds for the price difference
Several weeks after Microsoft was the subject of a lawsuit from the Australian Competition and Consumer Commission (ACCC), the company apologized in response to allegations that it had steered Microsoft 365 users toward more expensive Copilot-enabled plans.
This comes after the company emailed customers in six APAC countries about price increases for plans that include Copilot.
Despite acknowledging that they could save money by switching to a Classic plan (without Copilot), Redmond did not provide clear information about it.
Microsoft addresses Australian regulator’s lawsuit
“We are concerned that Microsoft’s communications denied its customers the opportunity to make informed decisions about their subscription options,” the ACCC said before Microsoft responded to customers.
The ACCC alleged that Microsoft misled customers by not disclosing the Classic plan; the company admitted it “could have been clearer” about non-AI subscription options.
Copilot plans increased from AU$109 to AU$159 annually for the Personal plan and from AU$139 to AU$179 for the Family Plan – increases of 45% and 29% respectively.
“Our relationship with our customers is built on trust and transparency and we apologize for not meeting our standards,” Microsoft said in an email (via The Registry).
Better yet, the apology goes a step further by offering affected customers a refund for the difference between the Copilot-enabled plan and its Classic counterpart.
It’s unclear whether Microsoft will similarly target customers in Malaysia, Singapore, Taiwan or Thailand; These four countries also faced price increases earlier this year.
It was also reported that Microsoft had to resend its apology email to the customer because the link to access the Classic plans on the first attempt was broken.
TechRadar Pro has asked Microsoft to comment on the ongoing case, but we did not receive an immediate response.
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