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 current subscription modifications linked to its synthetic intelligence (AI) instruments.
On October 27, the Australian Competitors and Shopper 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 greater costs.
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In an electronic mail despatched to affected clients, Microsoft mentioned it had added AI options to reply to 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 relies on belief and transparency, and we apologise for falling in need of 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 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 yr will obtain a refund for the distinction in price, with their first renewal after November 30, 2024, reverting to the Traditional model.
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