05:03 AM EDT, 10/27/2025 (MT Newswires) -- Microsoft ( MSFT ) is being sued by the Australian Competition and Consumer Commission for allegedly misleading millions of customers over communications regarding subscription plans and price increases following integration of its Copilot artificial intelligence assistant into Microsoft ( MSFT ) 365, the regulator said Monday.

For almost a year, the technology giant has been telling subscribers of 365 personal and family plans with auto-renewal enabled that, in order to maintain their subscription, they must accept the integration of Copilot and pay higher prices for their plan, or, alternatively, cancel their subscription.

The commission alleges Microsoft ( MSFT ) "deliberately" failed to disclose a third option that allowed subscribers to keep their plan at a lower price without Copilot until they tried to cancel, when it was offered as an option.

"We're concerned that Microsoft's ( MSFT ) communications denied its customers the opportunity to make informed decisions about their subscription options, which included the possibility of retaining all the features of their existing plan without Copilot and at the lower price," ACCC Chair Gina Cass-Gottlieb said. "We believe many Microsoft ( MSFT ) 365 customers would have opted for the Classic plan had they been aware of all the available options."

Microsoft ( MSFT ) did not immediately respond to MT Newswires' request for comment.