UK regulator probes Microsoft over AI subscription pricing

Britain's Competition and Markets Authority (CMA) has opened an investigation into Microsoft Corp. to determine whether the company misled customers about subscription options for its Microsoft 365 Personal and Family plans after adding AI features such as Copilot.

The CMA says existing subscribers received the new AI‑enabled features at no extra cost for the remainder of their current term, but were automatically shifted to a higher‑priced plan once that period ended unless they actively switched to a limited‑time “Classic” plan that kept the original features at the previous price. Annual customers on the standard plans paid £25 more than those on the Classic version. The regulator is assessing whether Microsoft’s communications before renewal were clear and timely, and whether customers were inadvertently charged more.

Microsoft has responded that consumer trust and transparency are priorities and that it is reviewing the CMA’s concerns in detail, while the investigation remains ongoing with no conclusions on potential legal breaches.