Microsoft apologizes for not explaining cheaper no-AI M365 plans (www.theregister.com)

Microsoft has apologized to Australian and New Zealand Microsoft 365 subscribers after regulators accused it of steering customers toward pricier bundles that include the Copilot AI assistant while obscuring a cheaper “Classic” (non‑AI) option. The Competition and Consumer Commission (ACCC) sued Microsoft, saying its January notices were misleading because they failed to disclose that subscribers could retain existing features without Copilot by switching to Microsoft 365 Personal or Family Classic at the earlier price. The company also fixed a broken link that initially prevented users from choosing the Classic plan and is offering refunds of the price difference to customers who downgrade after being upgraded to Copilot-enabled packages. For the AI/ML community this episode highlights growing regulatory attention to how AI features are packaged and sold. Technical adopters and enterprise buyers care not just about model capabilities but also transparency, opt-outs, and pricing models—areas where “dark patterns” can erode trust and slow adoption. The ACCC action sets a precedent that vendors must clearly present non‑AI options and avoid nudging users into AI upgrades without informed consent, which could change how SaaS providers embed, market and price on‑product AI services going forward.