Competition and Markets Authority Investigates Microsoft AI Subscription Practices

By the Editorial Team · Thursday, July 30, 2026

The UK’s Competition and Markets Authority has opened an investigation into Microsoft for allegedly misleading customers about price increases and feature changes in its Microsoft 365 AI subscription plans. The probe will assess whether Microsoft provided clear information before renewing subscriptions at higher prices, with potential implications for transparency in digital service pricing.

The United Kingdom's Competition and Markets Authority (CMA) has launched an investigation into Microsoft over allegations that the company misled customers regarding changes to its AI subscription plans. The inquiry focuses on Microsoft 365, a suite of applications including Word, Excel, PowerPoint, Outlook, and the AI assistant Copilot.

According to the CMA, Microsoft introduced new features such as Copilot in January 2025 and automatically provided these updates to existing subscribers at no additional cost for the remainder of their current plans. However, upon subscription renewal, customers were moved onto new plans that incorporated these AI features but came with a higher price tag—approximately £25 more for personal and family plans—unless they actively selected a less expensive option or canceled their subscription.

The regulator is assessing whether Microsoft failed to adequately inform consumers about the differences between the legacy and updated subscription plans, including the price increases and feature changes, before renewals were processed. This investigation aims to determine if customers were given sufficient, clear information to make informed choices or if the company engaged in practices that could be considered misleading.

A spokes representative for Microsoft stated that the company is carefully reviewing the CMA’s concerns and affirmed its intention to cooperate fully with the ongoing investigation.

The CMA’s scrutiny of Microsoft’s subscription practices reflects broader concerns about transparency and consumer rights in the rapidly evolving market for digital services and AI-enhanced products. The outcome of this investigation could have implications for how technology providers communicate changes in service offerings and pricing structures to their users.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.