Microsoft Offers Refunds to 2.7 Million Aussie 365 Users

Microsoft Faces Backlash, Offers Refunds to 2.7 Million 365 Users in Australia

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 07, 2025

Key Takeaways

Microsoft apologized to 2.7 million Australian 365 users and offered refunds after legal action over unclear AI-related pricing changes;
The ACCC accused Microsoft of not clearly disclosing cheaper non-AI options when it bundled Copilot with Microsoft 365 plans in October;
Affected users can stay on the AI plan or switch to the Classic version and receive refunds for extra charges before the end of 2024.

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Microsoft has apologized to its 2.7 million Microsoft 365 users in Australia and offered refunds after facing legal action over how it handled recent subscription changes linked to its artificial intelligence (AI) tools.

On October 27, the Australian Competition and Consumer Commission (ACCC) launched a case against the company.

The regulator claimed that Microsoft failed to inform users about cheaper subscription options when it bundled its Copilot AI assistant into Microsoft 365 Personal and Family plans in October, which also came with higher prices.

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In an email sent to affected customers, Microsoft said it had added AI features to respond to demand for advanced tools. However, the company admitted it "could have been clearer about the availability of a non-AI-enabled offering with subscribers".

Microsoft stated:

Our relationship with our customers is based on trust and transparency, and we apologise for falling short of our standards.

The company outlined two choices for subscribers. Customers can continue using the AI-supported plan, priced between $10 and $12 (AU$16–$18) per month, or move to Microsoft 365 Classic, which costs $7 to $9 (AU$11–$14) monthly and does not include Copilot.

Those who switch to the Classic version by the end of the year will receive a refund for the difference in cost, with their first renewal after November 30, 2024, reverting to the Classic version.

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