Microsoft Faces CMA Probe Over 365 Subscription Changes

The UK Competition and Markets Authority has opened a formal investigation into how Microsoft marketed subscription changes for Microsoft 365 Personal and Family plans.

The regulator will examine whether Microsoft gave customers clear information about the plans available at renewal and whether its presentation caused some subscribers to pay more than necessary.

Microsoft added Copilot and raised subscription prices

Microsoft added Copilot and other AI features to Microsoft 365 Personal and Family plans in January 2025.

Existing subscribers received the new features without an immediate charge until their current subscription term ended. At renewal, Microsoft automatically moved them to more expensive plans that included AI features.

Customers who did not want Copilot had to switch to a cheaper plan or cancel their subscription. Microsoft also stopped offering Copilot-free Personal and Family plans to new customers.

The company introduced temporary Classic plans for existing subscribers. Microsoft 365 Personal Classic costs £59.99 per year, while the AI-enabled plan costs £84.99. Microsoft 365 Family Classic costs £79.99, compared with £104.99 for the AI version.

CMA questions how Microsoft presented cheaper plans

The CMA will investigate whether Microsoft clearly explained the cheaper Classic plans and gave subscribers enough time to compare their options before renewal.

The regulator said customers should be able to decide whether they want to pay for AI features such as Copilot. Companies must also introduce subscription changes through fair and transparent practices without misleading consumers.

The CMA can impose fines without first taking a company to court. Microsoft could face a penalty of up to 10% of its global annual turnover if the regulator concludes that it broke UK consumer protection law.

The investigation remains ongoing, and the CMA has not reached a conclusion.

This is not the first recent CMA investigation involving Microsoft. In May, the regulator opened a probe into Microsoft’s business software ecosystem.

The investigation also comes as Microsoft’s FY26 Q4 earnings hit $90 billion as AI growth accelerated.

Via Neowin