Australia“s Competition & Consumer Commission (ACCC) has initiated legal action against Microsoft, claiming the tech giant misled users of its Microsoft 365 service. The ACCC alleges that users subscribed to Microsoft 365 Personal and Family plans with auto-renewal were incorrectly informed that they needed to accept an integration with Copilot and pay higher fees to continue their subscription, or alternatively cancel their service.
The consumer protection agency contends that this information was false or misleading, as it failed to disclose a third option. This undisclosed alternative, the Microsoft 365 Personal or Family Classic plans, would have allowed users to maintain their current features without the Copilot integration at their previous, lower price. Reports have indicated that Microsoft planned to raise the price of the M365 subscription to account for Copilot”s inclusion, with the Classic plan suggested as an alternative.
ACCC Chair Gina Cass-Gottlieb stated, “Following a detailed investigation, we will allege in Court that Microsoft deliberately omitted reference to the Classic plans in its communications and concealed their existence until after subscribers initiated the cancellation process to increase the number of consumers on more expensive Copilot-integrated plans.” Cass-Gottlieb expressed concerns that Microsoft”s communications prevented customers from making informed choices about their subscription options.
At the time of publication, The Register had reached out to Microsoft for comment but had not received a response. Subsequently, the company issued a statement emphasizing its commitment to consumer trust and transparency, noting that it was reviewing the ACCC”s claims thoroughly. Microsoft affirmed its dedication to collaborating with the regulator to ensure compliance with legal and ethical standards.
In other news from Australia, the federal government announced it would not create an exemption in local copyright law to allow AI companies free access to content for model training, asserting that Australian creators deserve copyright protection.
Meanwhile, India“s Ministry of Electronics and Information Technology has proposed new laws requiring social media platforms and online publishers to label AI-generated content clearly. These regulations would mandate that such content include a visible label with a unique identifier prominently displayed, addressing concerns over potential misuse of deepfakes to spread misinformation or manipulate public opinion.
Lastly, China“s Communist Party has ratified its 15th five-year plan, with renewed emphasis on achieving self-sufficiency in digital technology. While the complete plan will be released next year, preliminary reports highlight the expected role of the private sector in fostering technological advancements.
In a related development, Alibaba Cloud has quietly discontinued its VMware-as-a-service offering, which previously provided features such as vSphere and NSX. This decision aligns with a shift in strategy from VMware”s owner, Broadcom.
As the situation unfolds, the implications for consumers and the tech industry remain to be seen.
