Microsoft’s recent rollout of Copilot into consumer Microsoft 365 plans — and the Australian regulator’s lawsuit that followed — has exposed a simple truth for cost-conscious users: you can keep the same Office apps and OneDrive storage while avoiding the AI-driven price bump by switching to a Microsoft 365 Classic plan. This article explains exactly how that works, what the court action means, and the trade-offs to consider before you cancel, switch, or stay put.
Microsoft announced it would integrate Copilot — its generative AI assistant — into Microsoft 365 Personal and Family subscriptions as part of a broader consumer rollout. The company justified a modest price increase by pointing to the added AI capabilities and a monthly allotment of AI credits for consumer use. Existing subscribers were told the new features would appear at their next renewal and that a higher subscription price would apply to the Copilot-enabled plans.
In late October 2025, Australia’s competition regulator, the Australian Competition and Consumer Commission (ACCC), commenced Federal Court proceedings against Microsoft Australia and Microsoft Corporation. The ACCC alleges that communications to auto-renewing consumers in October 2024 — two emails and a blog post — gave subscribers the impression they had only two choices: accept the Copilot-integrated price increase or cancel their subscription. The regulator claims Microsoft failed to disclose a third option: a lower-cost Microsoft 365 Personal Classic or Family Classic plan that preserved the previous feature set without Copilot and at the pre‑increase price. The ACCC says that option was effectively hidden and only presented in the cancellation flow, which deprived millions of Australians of informed choice.
The public controversy has surfaced useful, practical information for subscribers worldwide: if you don’t want Copilot and don’t want to pay more for it, you can often switch to the Classic plan via your Microsoft account — though availability and the exact user experience can vary by region. Microsoft’s own guidance documents show a self-serve path to downgrading to Classic via the Accounts > Subscriptions > Manage > Cancel subscription flow.
In its media statement, the ACCC quantified the alleged consumer impact: the personal plan’s annual price in Australia rose by roughly 45% (from A$109 to A$159) and the family plan rose by about 29% (from A$139 to A$179) after Copilot was integrated. The regulator is seeking penalties, injunctions, consumer redress, and legal costs. Maximum penalties under Australian consumer law were outlined in the ACCC release but any eventual fine would be for a court to determine.
Microsoft’s public messaging emphasized choice and privacy safeguards while explaining the product decision. Microsoft’s consumer blog announced the Copilot integration and referenced options for subscribers to switch to a non-Copilot plan such as Microsoft 365 Classic for a limited time. Microsoft says it maintains customer choice, while the ACCC contends those choices were not adequately communicated. That factual conflict is the center of the legal dispute.
At the same time, the ACCC’s lawsuit highlights how design, messaging, and disclosure can turn a product update into a regulatory problem. The complaint does not challenge Microsoft’s right to offer new features or change prices; it challenges whether consumers were given a fair opportunity to choose. The court’s decision will be significant for regulators and product teams because it tests the line between legitimate upselling and potentially misleading product presentation.
For now, the safe path for budget‑minded users is straightforward: check your Microsoft account, follow the cancellation flow to see the Classic option, and confirm the effective date before making the switch. If the Classic option isn’t visible where you are, insist on a clear explanation from Microsoft support and retain records of the conversation. The wider regulatory fight will unfold in court, but the immediate consumer-level choices are already in your hands.
Microsoft’s push to fold Copilot into mainstream consumer subscriptions is a strategic bet that many users will accept a small recurring fee for AI convenience. Regulators, however, are reminding the industry that how those decisions are communicated and how alternatives are presented matters just as much as the product changes themselves. For readers who want the same Office experience without Copilot’s extra charge, Microsoft 365 Classic remains the most direct, practical route — provided you can find it and confirm when the change takes effect in your account.
Source: Mashable You can get Microsoft 365 without Copilot for cheaper. Here's how.
Background
Microsoft announced it would integrate Copilot — its generative AI assistant — into Microsoft 365 Personal and Family subscriptions as part of a broader consumer rollout. The company justified a modest price increase by pointing to the added AI capabilities and a monthly allotment of AI credits for consumer use. Existing subscribers were told the new features would appear at their next renewal and that a higher subscription price would apply to the Copilot-enabled plans. In late October 2025, Australia’s competition regulator, the Australian Competition and Consumer Commission (ACCC), commenced Federal Court proceedings against Microsoft Australia and Microsoft Corporation. The ACCC alleges that communications to auto-renewing consumers in October 2024 — two emails and a blog post — gave subscribers the impression they had only two choices: accept the Copilot-integrated price increase or cancel their subscription. The regulator claims Microsoft failed to disclose a third option: a lower-cost Microsoft 365 Personal Classic or Family Classic plan that preserved the previous feature set without Copilot and at the pre‑increase price. The ACCC says that option was effectively hidden and only presented in the cancellation flow, which deprived millions of Australians of informed choice.
The public controversy has surfaced useful, practical information for subscribers worldwide: if you don’t want Copilot and don’t want to pay more for it, you can often switch to the Classic plan via your Microsoft account — though availability and the exact user experience can vary by region. Microsoft’s own guidance documents show a self-serve path to downgrading to Classic via the Accounts > Subscriptions > Manage > Cancel subscription flow.
What “Classic” means — and what you keep
Microsoft 365 Classic is not a stripped-down mishmash: it’s essentially the consumer subscription many users already know, without the Copilot integration. The Classic plans retain core features that make Microsoft 365 appealing for home users:- Full desktop apps: Word, Excel, PowerPoint, OneNote, and more with offline access.
- 1 TB of OneDrive storage per user (shared in Family plans).
- Microsoft Defender protections and other security features included in consumer plans.
- Outlook ad‑free email, Clipchamp basics, and access across devices.
What you lose by choosing Classic
Classic removes the in‑app Copilot experience — the contextual assistant that can summarize, draft, generate slides, suggest formulas, and act on file content. If you rely on AI features to draft email threads, generate presentations from brief prompts, or automate repetitive spreadsheet analysis, Classic will feel limiting. Classic may also be not eligible for some future AI-first features Microsoft introduces exclusively to Copilot-enabled SKUs. Microsoft has framed Classic as being maintained “as it exists today,” with some new innovations available only to the Copilot-enabled subscriptions.How to switch to Microsoft 365 Classic (step-by-step)
Microsoft’s support documentation outlines the downgrade path. The essential flow is straightforward but counterintuitive: you use the “Cancel subscription” button to reveal the option to switch to Classic rather than fully canceling. Follow these steps carefully:- Sign in to your Microsoft account and open Services & Subscriptions.
- Find your Microsoft 365 Personal or Family subscription and click Manage > Cancel subscription. Don’t worry — this is the path that exposes downgrade options rather than immediately terminating service.
- When the cancellation flow opens, look for a prompt that offers alternatives. If eligible, you’ll be presented with the option to switch to Microsoft 365 Personal Classic or Microsoft 365 Family Classic (or another lower-cost plan). Choose the Classic plan you want.
- Follow the confirmation and payment prompts. Microsoft typically applies the change at your next renewal date and may not charge until that renewal. Confirm the effective date so you know when the new pricing takes effect.
- The downgrade commonly takes effect at your next renewal (prepaid term), so you may remain on the higher-priced Copilot plan until that date.
- In some regions or for some subscribers, the Classic option appears reliably; in others, users have reported they cannot find the Classic option in their cancellation flow and have needed to contact Microsoft support or sales to request the downgrade. The ACCC’s court filing highlights this inconsistency in Australia.
Why Microsoft’s rollout generated a regulator complaint
The ACCC’s complaint is narrowly focused: the regulator does not object to Microsoft changing its product mix or increasing prices per se. Instead, the issue is how those changes were communicated to auto‑renewing customers. The ACCC alleges that Microsoft’s two emails and a blog post implied only two choices — accept the new Copilot-enabled plan at a higher price, or cancel the subscription — while failing to disclose that a Classic alternative existed. The regulator argues that the Classic option being largely discoverable only through the cancellation flow effectively nudged consumers toward the costlier option by design.In its media statement, the ACCC quantified the alleged consumer impact: the personal plan’s annual price in Australia rose by roughly 45% (from A$109 to A$159) and the family plan rose by about 29% (from A$139 to A$179) after Copilot was integrated. The regulator is seeking penalties, injunctions, consumer redress, and legal costs. Maximum penalties under Australian consumer law were outlined in the ACCC release but any eventual fine would be for a court to determine.
Microsoft’s public messaging emphasized choice and privacy safeguards while explaining the product decision. Microsoft’s consumer blog announced the Copilot integration and referenced options for subscribers to switch to a non-Copilot plan such as Microsoft 365 Classic for a limited time. Microsoft says it maintains customer choice, while the ACCC contends those choices were not adequately communicated. That factual conflict is the center of the legal dispute.
Practical tips before you switch
Switching to Classic is simple in principle, but there are a few practical considerations to avoid surprises:- Check your renewal date. Switching typically takes effect at next renewal; canceling now and selecting Classic does not necessarily change the immediate billing for previously paid time. Confirm the effective date to avoid double payments or service interruptions.
- Back up critical content. While a downgrade to Classic preserves apps and OneDrive, never assume automatic continuity. Export or backup crucial files before you trigger account changes. This is sound practice regardless of Microsoft’s guarantees.
- Consider in‑app Copilot toggles first. If your concern is privacy or intrusive AI behavior rather than price, Microsoft added settings to disable Copilot in individual Office apps. That allows you to stay on the Copilot-enabled plan while turning off in‑app AI features — though you’d still pay the higher subscription price.
- Region differences matter. Users in different countries have reported inconsistent visibility of the Classic option; if it doesn’t appear for you, contact Microsoft support or sales. The ACCC specifically notes Australian users faced barriers, which is at the heart of the regulator’s complaint.
- Watch for future changes. Microsoft labeled Classic as a limited-time option to be maintained “as it exists today,” suggesting the company could change availability or feature parity later. If Classic disappears in your region, the only options might be Copilot-enabled plans, one-off perpetual Office licenses, or alternative suites. That potential impermanence is an important strategic factor for long-term planning.
Cost comparison — ballpark figures
Exact pricing varies by market and currency, but the key consumer pricing moves that generated headlines were:- The price of Microsoft 365 Personal in many jurisdictions rose by roughly $3 USD per month (annualized differences vary by currency), an increase Microsoft tied to Copilot inclusion. For annual billing, Microsoft’s published price updates showed a notable bump in consumer subscription costs.
- In Australia, the ACCC cited increases from A$109 → A$159 (Personal) and A$139 → A$179 (Family) after the Copilot integration — the figures that underpin the regulator’s claim about misleading communications.
- Microsoft 365 Classic plans hold to the pre-integration prices in regions where Classic is available. That makes Classic materially cheaper than Copilot-enabled plans for users who don’t want AI features.
Legal and consumer protection perspective — why this matters beyond Australia
This dispute raises broader questions for subscription-driven software providers:- Design and disclosure: When a company alters product tiers and pricing, regulators expect transparent consumer communications that disclose all material options — not burying alternatives in flows that consumers must already take to cancel. The ACCC’s case puts this principle to the test in court.
- Dark patterns vs. legitimate upsell: The ACCC’s complaint is framed around the design of communications and user flows that may have nudged consumers toward a higher-priced option. If the court finds the design intentionally obscured options, it would be a high‑profile reinforcement against certain interface or messaging practices.
- Global regulatory attention: Large consumer software providers operate in many jurisdictions with different consumer protections. What regulators learn (and decide) in one country can inform enforcement or best practices elsewhere, especially where large multinational firms are involved. The Microsoft‑ACCC matter will therefore be watched beyond Australian borders.
Strengths and risks of the Classic option — a critical assessment
Strengths
- Cost savings: Classic delivers significant savings for users who do not want or need Copilot, preserving Microsoft’s core productivity apps and OneDrive storage at lower pre‑Copilot prices. This is the single most practical advantage for budget‑sensitive users.
- Simplicity and familiarity: For many households, the familiar Office experience is enough. Classic removes the AI layer and preserves what users already rely on — a clear value proposition for those who prioritize stability and predictability.
- A short-term consumer safeguard: The existence of Classic provides an immediate alternative while regulatory scrutiny unfolds in places where the option may otherwise be hard to find. It’s a mechanism Microsoft and regulators can point to as evidence of consumer choice.
Risks and caveats
- Availability is inconsistent: Not all users see Classic in their account flows, and some regions appear to have limited or more awkward downgrade experiences — the very friction the ACCC alleges. If you can’t find Classic, switching may require contacting support or taking extra steps.
- Feature stagnation risk: Microsoft has signaled that some future innovations may be exclusive to Copilot-enabled SKUs. Choosing Classic could mean you won’t get new AI-first features down the road without switching plans again. That trade-off matters for users who prefer incremental improvements to their workflow.
- Temporary nature: Classic has been described as a limited-time option. If Microsoft later phases it out, users who stayed in Classic to avoid AI will face a future choice point: pay for Copilot, migrate to another productivity ecosystem, or move to one-off perpetual Office licenses. That uncertainty is a strategic downside.
- Privacy perceptions vs. reality: Turning off Copilot or downgrading to Classic addresses some privacy concerns, but Microsoft continues to state that it does not use customer prompts and files from Copilot in the Microsoft 365 apps to train foundation models. That pledge may reassure some users, but perceptions about data usage and control are sticky and can influence customer choices independent of contractual assurances.
What to do next (decision checklist)
- Confirm your renewal date and the price that will apply at renewal. If you’re billed annually, you may have time to decide.
- If cost is your chief concern and you don’t use AI features, try the downgrade flow (Manage > Cancel subscription) and see whether Microsoft offers Microsoft 365 Classic. If it’s available and the price is lower, confirm the effective date.
- If you can’t find Classic in the cancellation flow, contact Microsoft support or Sales chat and ask to be moved to a non‑Copilot plan. Keep records of your interactions in case you need to reference them later.
- If privacy or data‑use concerns are your primary issue but you don’t want to change price, explore the per-app Copilot toggles so you can disable in‑app AI while retaining your current subscription.
Final analysis — what this means for consumers and Microsoft
The immediate, practical takeaway for consumers is clear: there is often a way to avoid paying the Copilot premium while retaining the features that matter most to typical home users. Microsoft’s published support guidance confirms a downgrade path to Classic plans for users who prefer an AI‑free experience, and that path is visible to many account holders today.At the same time, the ACCC’s lawsuit highlights how design, messaging, and disclosure can turn a product update into a regulatory problem. The complaint does not challenge Microsoft’s right to offer new features or change prices; it challenges whether consumers were given a fair opportunity to choose. The court’s decision will be significant for regulators and product teams because it tests the line between legitimate upselling and potentially misleading product presentation.
For now, the safe path for budget‑minded users is straightforward: check your Microsoft account, follow the cancellation flow to see the Classic option, and confirm the effective date before making the switch. If the Classic option isn’t visible where you are, insist on a clear explanation from Microsoft support and retain records of the conversation. The wider regulatory fight will unfold in court, but the immediate consumer-level choices are already in your hands.
Microsoft’s push to fold Copilot into mainstream consumer subscriptions is a strategic bet that many users will accept a small recurring fee for AI convenience. Regulators, however, are reminding the industry that how those decisions are communicated and how alternatives are presented matters just as much as the product changes themselves. For readers who want the same Office experience without Copilot’s extra charge, Microsoft 365 Classic remains the most direct, practical route — provided you can find it and confirm when the change takes effect in your account.
Source: Mashable You can get Microsoft 365 without Copilot for cheaper. Here's how.
