According to Windows Report | Error-free Tech Life, Microsoft has officially apologized to Microsoft 365 Personal and Family subscribers in New Zealand for failing to communicate changes introduced with its AI-enabled plans in October 2024. The company admitted it “fell short of our standards” and is now reaching out to affected customers with two options: stay on their current Microsoft 365 plan with Copilot AI tools or switch to a “Classic” version at the original price and receive a refund. This communication failure occurred when Microsoft rolled out new pricing citing Copilot inclusion, but didn’t make clear that users could continue without the AI features. The apology comes just 10 days after Microsoft faced an ACCC lawsuit in Australia over similar pricing and add-on concerns.
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Microsoft’s Transparency Problem
Here’s the thing: this isn’t just about New Zealand. Microsoft is facing the exact same issue in Australia with regulators, and honestly, this pattern is becoming way too familiar. Tech companies keep adding features nobody asked for, then quietly baking the cost into everyone’s bill. And when customers complain? Suddenly there’s an “oversight” and apologies start flowing.
What’s really interesting is the timing. Microsoft drops this apology right after getting sued in Australia? That’s not a coincidence. They’re clearly trying to get ahead of what could become a much bigger regulatory headache. Basically, they’re realizing that their “trust us, we know what’s best for you” approach isn’t working anymore.
The AI Upsell Game
Look, we all know AI is the new gold rush. Every tech company is desperate to show Wall Street they’re monetizing AI. But forcing Copilot on everyone and hoping they won’t notice the price increase? That’s just sloppy. Especially when many users probably don’t even want AI features cluttering up their Office experience.
I mean, think about it. How many people actually need AI writing their emails or making PowerPoints? For most small businesses and families, Microsoft 365 was perfectly fine before Copilot came along. Now they’re being asked to pay more for features they might never use. That’s a tough sell, even for Microsoft.
Where This Is Headed
So what happens next? Well, we’re probably going to see more of these “voluntary” corrections as regulators worldwide start paying closer attention to tech pricing practices. Microsoft’s 35-year presence in New Zealand means they can’t afford to burn bridges, but they also can’t afford to slow down their AI revenue train.
The real question is whether other companies will learn from Microsoft’s mistake. Because let’s be honest – this isn’t just a Microsoft problem. The entire industry has gotten way too comfortable with the “add features, raise prices, apologize later” playbook. Maybe it’s time for a new approach where customers actually get to choose what they pay for.
