The watchdog is examining whether renewal notices clearly explained higher-priced Microsoft 365 Personal and Family subscriptions after new AI features were added.
The Competition and Markets Authority (CMA) has opened an investigation into Microsoft over changes to Microsoft 365 Personal and Family subscriptions, focusing on whether customers were given clear information before being moved to higher-priced plans that included Copilot. From January 2025, existing customers were given access to new features at no extra cost for the rest of their subscription, but on renewal they were automatically shifted to a new plan with those additions unless they chose another option or cancelled. The CMA is assessing whether Microsoft’s communications before renewal were misleading and whether customers were given enough information on pricing differences and available alternatives. Microsoft also introduced a time-limited ‘Classic’ option for existing Personal and Family subscribers, keeping pre-change features at the same price. For annual subscribers, the new Personal and Family plans were £25 a year more than the Classic versions. The regulator said it has reached no conclusions at this stage on whether the law was broken, while stressing support for AI adoption alongside fair and transparent treatment of consumers. The case comes as the CMA exercises direct consumer enforcement powers introduced in April 2025, which let it determine breaches without going through the courts. It said it has already secured more than £1.95 million in refunds and imposed fines close to £6.2 million under those powers. Parallel scrutiny is also under way abroad, with the Australian Competition and Consumer Commission (Australia’s competition regulator) and the Italian Competition Authority separately examining Microsoft entities over renewal information and subscription changes.