UK Regulator Probes Microsoft Over Misleading Subscription Costs

The Competition and Markets Authority (CMA) launched an investigation on Wednesday into whether Microsoft Corporation misled customers regarding Microsoft 365 Personal and Family subscription plans. The probe centers on changes made in January 2025, during which existing users received temporary free access to new features, including the AI assistant Copilot, before being automatically migrated to more expensive plans upon renewal.

Regulators are examining if Microsoft's pre-renewal communications were transparent and whether users were provided sufficient information to understand the cost differences between plans. While a time-limited Classic plan existed to maintain original pricing, annual subscribers on the new plans paid £25 more. The CMA aims to determine if customers were misled into paying higher prices as a result of these practices.

Microsoft Corporation stated it is reviewing the claims and remains committed to working constructively with the regulator. This inquiry follows a separate probe in May regarding the company's business software dominance. Similar investigations into Microsoft's subscription renewal information are currently being conducted by the Australian Competition and Consumer Commission and the Italian Competition Authority.