Microsoft is providing refunds to nearly three million Australian subscribers of its Microsoft 365 service following legal action from the country's competition watchdog. The Australian Competition and Consumer Commission (ACCC) took Microsoft to Federal Court, alleging the company misled consumers by not being clear about the pricing structure for plans that included its Copilot AI assistant and failing to adequately disclose cheaper alternatives without the tool. In response, Microsoft Australia emailed subscribers, apologizing for the lack of clarity and for falling short of its transparency standards. The company is offering refunds to customers who choose to switch back to the less expensive "classic" subscription plans before the end of 2025, covering payments made after November 30, 2024. Microsoft could still face multimillion-dollar penalties pending the court's decision.