Microsoft apologizes to 365 users over confusing software tiers

• Microsoft 365 became more expensive in six APAC countries when Copilot was integrated
• Microsoft didn’t do enough to tell customers they could retain Classic (non-Copilot) plans
• Microsoft is believed to be offering refunds for the price difference

Several weeks after Microsoft was hit with an Australian Competition & Consumer Commission (ACCC) lawsuit, the company has apologized in response to accusations that it steered Microsoft 365 users towards more expensive Copilot-enabled plans.

This comes after the company emailed customers in six APAC countries about price increases for plans that include Copilot.

Despite acknowledging that they could save money by switching to a Classic plan (without Copilot), Redmond provided no clear information about this.

Microsoft addresses Australian regulator lawsuit

“We’re concerned that Microsoft’s communications denied its customers the opportunity to make informed decisions about their subscription options,” the ACCC noted before Microsoft responded to customers.

The ACCC alleged Microsoft misled customers by not disclosing the Classic plan – the company admitted it “could have been clearer” about the non-AI subscription options.

Copilot plans rose from AU$109 to AU$159 annually for the Personal plan, and AU$139 to AU$179 for the Family Plan – 45% and 29% increases respectively.

“Our relationship with our customers is based on trust and transparency and we apologise for falling short of our standards,” Microsoft said in an email (via The Register).

Better still, the apology goes one step further by offering affected customers a refund for the difference between the Copilot-enabled plan and the Classic counterpart.

It’s unclear whether Microsoft will address customers in Malaysia, Singapore, Taiwan or Thailand similarly – these four countries also faced price hikes earlier this year.

It was also reported that Microsoft had to resend its customer apology email because the link to access Classic plans in the first attempt was broken.

TechRadar Pro has asked Microsoft to comment on the ongoing case, but we did not receive an immediate response.

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