The Competition and Markets Authority is investigating Microsoft to see if the tech giant gave customers adequate information in changing their Microsoft 365 subscription prices.

The investigation concerns Microsoft’s rollout of new features across its Microsoft 365 offerings, which included Copilot. These were first offered as an automatic addition at no extra cost during an active subscription.

However, when it came time for that subscription to renew, Microsoft automatically ‘upgraded’ users to a new plan which featured the new additions, with an increased cost of £25 more a year.

Users would have had to take extra steps to pick another plan or end their subscriptions. Existing customers had the time-limited option of switching to a ‘Classic’ plan, which offered users the same features they had access to before the changes, at the same price.

Microsoft stopped offering Personal and Family plans to new subscribers without these new features.

The CMA is looking into whether Microsoft’s communications with customers before renewal were misleading. The investigation will examine whether customers were given key information about the plans and the difference in cost to understand the options available to them before making a decision.

At this stage, the CMA has reached no conclusions about whether Microsoft has broken the law. The CMA says it is strongly supportive of AI adoption and the benefits this could bring to real people’s lives across the UK but has emphasised that no-one should be treated unfairly. It’s also important that customers have clear information which helps them shop around and make choices about which AI products work best for them.

“People across the UK rely on Microsoft 365, whether they’re studying, sending emails or managing household finances,” Hayley Fletcher, Senior Director for Consumer Protection at the CMA, said.

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“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.

“As people rely more and more on AI tools like Copilot, it’s important that everyone is able to access these through fair and transparent practices and understand when they have the opportunity to shop around and make choices about which products they want to use.”