Microsoft has apologized to its 2.7 million Microsoft 365 customers in Australia and supplied refunds after dealing with authorized motion over the way it dealt with latest subscription modifications 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 prospects, Microsoft mentioned it had added AI options to answer demand for superior instruments. Nonetheless, the corporate admitted it “might have been clearer concerning the availability of a non-AI-enabled providing with subscribers”.
Microsoft acknowledged:
Our relationship with our prospects relies on belief and transparency, and we apologise for falling in need of our requirements.
The corporate outlined two selections 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 Traditional, which prices $7 to $9 (AU$11–$14) month-to-month and doesn’t embrace Copilot.
Those that swap to the Traditional model by the top 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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