Microsoft faces competition probe over Copilot subscription price hike

Watchdog asks whether customers were clearly told how to avoid the costlier AI-equipped plans

Microsoft faces an investigation by the UK's competition watchdog over whether customers were misled when it added features to Microsoft 365 subscriptions and raised prices.

The issue dates back to January 2025, when Microsoft added new features, including Copilot, to its consumer package. At renewal, customers were automatically moved onto a more expensive tier containing those features unless they switched plans or canceled altogether.

Existing customers could switch to a cheaper "Classic" plan without the new features. Remaining on the Copilot-equipped version cost £25 more per year.

The Competition and Markets Authority (CMA) is scrutinizing whether Microsoft's communications misled customers about their options.

The regulator said: "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."

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