If your business uses Microsoft 365, the news from the ACCC this week deserves your full attention. The Australian Competition and Consumer Commission has filed a lawsuit against Microsoft Australia and its US parent corporation, alleging that approximately 2.7 million Australian subscribers were misled about their options when Microsoft rolled out Copilot.

This case is not just about personal or family plan subscribers. It raises a much bigger question that every Australian business owner should be asking right now: do you actually know what you are paying for inside your Microsoft 365 subscription?

What the ACCC Is Alleging

The ACCC alleges that when Microsoft began integrating Copilot into Microsoft 365 Personal and Family plans, it presented subscribers with what appeared to be two choices: accept a higher-priced plan that included Copilot, or cancel their subscription entirely.

What Microsoft allegedly failed to make clear was the existence of a third option. That option, known as the “Classic” plan, allowed subscribers to keep their existing features at a lower price without Copilot included. According to the ACCC, this Classic plan was only revealed to subscribers when they went through the cancellation process, meaning most people would never have discovered it unless they were already prepared to walk away.

The ACCC is seeking penalties, injunctions, consumer redress, and costs. The commission alleges this conduct constitutes a breach of Australian consumer law.

Why This Matters Beyond Personal Plans

The Microsoft 365 Personal and Family plans are consumer products, but the principle at the centre of this case applies directly to the business world. Copilot is being integrated into business Microsoft 365 plans as well, and the way Microsoft communicates these changes to customers is not always transparent.

If you manage IT procurement for your organisation, you may have already received notifications about plan changes, pricing updates, or prompts to upgrade to include Copilot. The ACCC case is a clear signal that you should scrutinise those communications carefully rather than accepting them at face value.

The broader issue is one of informed consent. Businesses deserve to understand exactly what they are paying for, what features are being added to their subscription, and whether there is an alternative that better suits their needs and budget.

What Is the Classic Plan and Does It Still Exist?

The “Classic” plan referenced in the ACCC’s case was the original Microsoft 365 Personal or Family plan without Copilot bundled in. Microsoft introduced this option quietly, and the ACCC alleges it was only surfaced to customers who initiated the cancellation process.

Whether that specific plan option remains available to new subscribers or existing customers is something you would need to verify directly with Microsoft or through your IT partner. What is important to understand is the underlying pattern: when technology vendors bundle new AI features into existing subscriptions, it is not always in your best interest to accept the default option without question.

What to Check on Your Microsoft 365 Subscription Right Now

Whether you are on a personal plan or a business plan, there are several things worth checking today.

• Review your current plan and pricing. Log in to your Microsoft 365 admin centre or account portal and check what plan you are currently on and what you are paying per user per month.
• Check what features are included. Has Copilot been added to your plan without a specific conversation about it? Understand what is included and whether your team is actually using those features.
• Look at your renewal communications. If you have received any emails or in-product notifications about plan changes in the past 12 months, review them again with fresh eyes. Were your options clearly explained?
• Compare your current plan to alternatives. Microsoft offers a range of business plans at different price points. If you are paying for Copilot features your team does not use, there may be a more suitable option available.
• Speak to your IT partner. If you are unsure what plan you are on or whether it reflects your actual needs, get an independent review before your next renewal date.

Otto IT’s Position: Guidance Over Upsell

At Otto IT, we have always believed that the right technology decision is the one that fits your business, not the one that happens to be most convenient for a vendor’s revenue targets.

When Microsoft introduced Copilot, we took the time to understand what it actually does, what it costs, and which of our clients would genuinely benefit from it. We did not roll out blanket recommendations to upgrade every client to a Copilot-enabled plan. We asked questions first. We evaluated use cases. We had honest conversations about whether the investment was justified.

That is the kind of IT partnership Australian businesses deserve. The ACCC case is a reminder of what can happen when that honest conversation gets replaced by a sales funnel.

Copilot is Valuable, with the Right Expectations

It is worth being clear about one thing: Copilot is not the problem here. The ACCC’s case is about how it was sold, not whether it has merit as a product.

For the right organisation with the right workflows, Microsoft 365 Copilot can be genuinely useful. It can help teams draft documents, summarise meetings, generate reports, and reduce time spent on repetitive tasks. The value is real, but it is also highly dependent on how your team works and whether they are set up to use it effectively.

The question is never “is Copilot good?” The question is “is Copilot right for us, and are we paying a fair price for what we actually use?”

Those are the questions your IT partner should be helping you answer. If they are not, that is worth addressing.

What to Do If You Think You Were Misled

If you are a Microsoft 365 Personal or Family subscriber and you believe you were presented with misleading choices about your plan options, the ACCC encourages consumers to stay informed as the case progresses. You can also contact the ACCC directly through their website at accc.gov.au if you believe you have experienced similar conduct.

For business subscribers, if you have concerns about how your Microsoft 365 plan was sold or changed without adequate explanation, the right first step is to review your current agreement and speak with your IT provider. If you do not have an IT provider you trust to give you a straight answer, that is exactly the conversation we are here to have.

Get an Independent Microsoft 365 Review

If this news has prompted you to take a fresh look at your Microsoft 365 subscription, we can help. Otto IT offers independent Microsoft 365 reviews for Australian businesses. We will look at what you are paying, what you are getting, and whether there is a configuration that better suits your team and your budget.

There is no upsell involved. If your current plan is working well, we will tell you. If there is a smarter option, we will explain it clearly and let you decide.

Book a free Microsoft 365 review with Otto IT →

You can also contact us here if you have questions before booking.

Frequently Asked Questions

Does the ACCC case affect business Microsoft 365 plans?

The ACCC’s current case specifically relates to Microsoft 365 Personal and Family plans and approximately 2.7 million Australian subscribers on those plans. However, the principles at the centre of the case, transparency, informed consent, and the concealment of lower-cost alternative, are relevant to any Microsoft 365 customer, including businesses. If your business plan has changed recently in ways that were not clearly communicated, it is worth reviewing.

What is the Microsoft 365 Classic plan?

The “Classic” plan is the term used in the ACCC’s case to describe the original Microsoft 365 Personal or Family plan without Copilot bundled in. The ACCC alleges Microsoft concealed this option from subscribers, only revealing it when customers attempted to cancel. Whether this option is still available depends on your current subscription status and should be confirmed directly with Microsoft or your IT partner.

Is Microsoft Copilot worth paying for?

That depends entirely on how your team works and whether you have the workflows in place to use it effectively. For some teams, Copilot delivers genuine productivity gains. For others, it is an unused feature attached to a higher monthly bill. The answer should be based on your specific situation, not on a vendor’s marketing materials or a default upgrade prompt.

What should I do if my Microsoft 365 plan changed without proper notice?

Start by reviewing your account to confirm what plan you are currently on and when the change occurred. Check any email communications from Microsoft around that period. If you believe you were not given adequate notice or clear options, you can reach out to Microsoft’s support team, contact the ACCC, or speak with an independent IT provider to understand your options.

How can Otto IT help with my Microsoft 365 subscription?

Otto IT provides independent Microsoft 365 reviews for Australian businesses. We assess your current plan, licensing costs, and feature usage to ensure you are getting genuine value. We can also help you understand how Copilot fits into your business if that is something you are considering. Book a review at Book a Review or contact us here.