The UK competition watchdog has said it is investigating whether customers were misled by Microsoft over subscription options and “paid more as a result”.
The Competition and Markets Authority (CMA) has launched a probe into the tech giant over concerns that customers did not receive clear information about subscription options when changes were made to Microsoft 365 personal and family plans.
The investigation is looking at changes made to monthly and annual subscription plans, which now include AI service Copilot among other features.
From January 2025, Microsoft automatically gave existing customers access to new features, such as Copilot, at no extra cost for the remaining subscription period, but after this ended it automatically rolled them on to a new plan with the features at a higher price, unless they picked another plan or ended their subscription, the CMA said.
Existing customers were offered a time-limited option to switch to a “Classic” plan, which had the same features as before the changes at the same price.
Annual customers on the Microsoft 365 Personal and Family Plan paid £25 more than the Classic version.
The CMA said it is “looking into whether Microsoft’s communications with customers before renewal were misleading”.
The regulator said it has reached no conclusions about whether Microsoft broke the law.
Hayley Fletcher, senior director for consumer protection at the CMA, said: “People across the UK rely on Microsoft 365, whether they’re studying, sending emails or managing household finances.
“At a time when household budgets are squeezed, it’s important that people are clear on the price and the subscription plans available, so they can find the right deal for them.
“When a business changes its subscription plans, customers need clear and timely information about their options.
“Our investigation will consider whether Microsoft customers were misled and ended up paying more as a result.”
A Microsoft spokesman said: “Consumer trust and transparency are priorities for Microsoft, and we are reviewing the CMA’s claims in detail.
“We remain committed to working constructively with the regulator as their inquiry progresses.”
