Australia's competition watchdog, the ACCC, has initiated legal proceedings against Microsoft, accusing the tech giant of misleading approximately 2.7 million Australian customers. The lawsuit alleges that Microsoft misrepresented subscription options and price increases after integrating its AI assistant, Copilot, into Microsoft 365 Personal and Family plans. The ACCC claims that Microsoft failed to inform subscribers of an option to retain their existing plan features at the previous, lower price without Copilot, known as "Classic" plans. Instead, customers were allegedly presented with a choice to either accept the higher-priced, Copilot-integrated plans or cancel their subscriptions entirely. The regulator alleges that Microsoft deliberately omitted information about the Classic plans to steer consumers toward more expensive subscriptions. The legal action pertains only to the consumer-focused Personal and Family plans and does not involve business or enterprise subscriptions.