On October 27, 2025, the Australian Competition and Consumer Commission (ACCC) released a statement declaring that it had initiated legal proceedings against Microsoft Australia and its parent company, Microsoft, in the Federal Court. The ACCC alleged that Microsoft misled close to 2.7 million Australian users by providing inaccurate information regarding subscription choices and price hikes following the incorporation of the artificial intelligence assistant Copilot into Microsoft 365 plans.

Beginning on October 31, 2024, Microsoft notified users of Microsoft 365 Personal and Family editions with auto - renewal turned on that in order to keep their subscriptions active, they were required to either accept the Copilot integration and pay an increased fee or terminate their subscriptions. However, the ACCC contends that Microsoft neglected to mention a third viable option: the Microsoft 365 Personal or Family Classic plan. This plan enables users to carry on using the original features without Copilot at the previously lower price.