The ACCC’s case against Microsoft raises questions about market power and consumer transparency – but it also highlights how dependence on bundled software limits real choice for users.

The ACCC recently lodged proceedings in the Federal Court against Microsoft, alleging that it misled 2.7 million consumers into signing up for more expensive Office 365 subscriptions, featuring integration with Microsoft’s Copilot AI.

The ACCC says Microsoft informed existing 365 users of the 30 per cent price hike without making them aware of the option to retain their current subscription – without Copilot features – at existing price levels.

Only during the process of cancelling a subscription was the option to retain the existing ‘Classic’ tier revealed.

Chair of the ACCC, Gina Cass-Gottlieb, remarked that Microsoft “deliberately hid this third option…in order to increase the uptake of Copilot and the increased revenue from the Copilot integrated plans.”

Cass-Gottlieb is to be praised for drawing attention to this. But Microsoft appears to have shrugged at the impending legal proceedings as the cost of doing business.

This is mirrored by Microsoft Australia’s carefully choreographed response: “Consumer trust and transparency are top priorities for Microsoft. We remain committed to working constructively with the regulator and ensuring our practices meet all legal and........

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