Why the consumer watchdog is suing Microsoft

The Australian Competition and Consumer Commission is suing Microsoft as part of a campaign to crack down on big tech’s subscription tactics. But can the regulator take on a $6 trillion company and win?

Oct 29, 2025, updated Oct 29, 2025

Tech giants have invested billions into AI – and are looking for ways to get a return.

So when Microsoft offered its customers its new AI function Copilot recently, it told them they’d need to pay a higher price for their subscription – or cancel.

AI was now part of the deal, whether they wanted it or not.

Except it wasn’t. Now, the Australian Competition and Consumer Commission is suing Microsoft – alleging it intentionally misled customers to make them believe they had to pay more. It’s part of a bigger campaign to crack down on big tech’s subscription tactics.

So can the regulator take on a $6 trillion company and win?

Today, principle of Good Company Law Hannah Marshall on the ACCC’s David and Goliath battle to make Microsoft pay – and what needs to change to protect customers from tricky price hikes.

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