Microsoft has apologized to its 2.7 million Microsoft 365 customers in Australia and supplied refunds after going through authorized motion over the way it dealt with latest subscription adjustments linked to its synthetic intelligence (AI) instruments.
On October 27, the Australian Competitors and Shopper Fee (ACCC) launched a case in opposition to 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 greater 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 concerning 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. Prospects can proceed utilizing the AI-supported plan, priced between $10 and $12 (AU$16–$18) per 30 days, or transfer to Microsoft 365 Basic, which prices $7 to $9 (AU$11–$14) month-to-month and doesn’t embody Copilot.
Those that change to the Basic model by the top of the yr will obtain a refund for the distinction in value, with their first renewal after November 30, 2024, reverting to the Basic model.
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