Microsoft has apologized to its 2.7 million Microsoft 365 customers in Australia and provided refunds after going through authorized motion over the way it dealt with current subscription modifications linked to its synthetic intelligence (AI) instruments.
On October 27, the Australian Competitors and Client Fee (ACCC) launched a case towards the corporate.
The regulator claimed that Microsoft failed to tell customers about cheaper subscription choices when it bundled its Copilot AI assistant into Microsoft 365 Private and Household plans in October, which additionally got here with larger costs.
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In an e-mail despatched to affected clients, Microsoft stated it had added AI options to answer demand for superior instruments. Nonetheless, the corporate admitted it “may have been clearer in regards to the availability of a non-AI-enabled providing with subscribers”.
Microsoft acknowledged:
Our relationship with our clients is predicated on belief and transparency, and we apologise for falling wanting our requirements.
The corporate outlined two decisions for subscribers. Clients can proceed utilizing the AI-supported plan, priced between $10 and $12 (AU$16–$18) monthly, or transfer to Microsoft 365 Traditional, which prices $7 to $9 (AU$11–$14) month-to-month and doesn’t embody Copilot.
Those that swap to the Traditional model by the tip of the 12 months will obtain a refund for the distinction in value, with their first renewal after November 30, 2024, reverting to the Traditional model.
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