UK CMA Investigates Microsoft 365 Copilot Price Changes

The UK Competition and Markets Authority is investigating whether Microsoft gave customers clear information about their options before Microsoft 365 Personal and Family subscriptions renewed at higher prices.

Microsoft added Copilot and other AI features to its consumer subscription plans. Existing subscribers received the new features at no extra cost for the rest of their current terms. At renewal, customers moved to higher-priced plans unless they chose another option or canceled.

Microsoft also introduced lower-priced Personal Classic and Family Classic plans for a limited time. These plans allowed existing subscribers to keep their previous features without Copilot or AI credits and continue paying their earlier prices.

The CMA is examining whether Microsoft clearly explained that choice before customers renewed.

What Changed for UK Subscribers

For UK subscribers paying annually, the Copilot-inclusive plans cost £25 more than the Classic versions:

The Copilot-inclusive Personal plan costs £8.49 a month, compared with £5.99 for Personal Classic. Family costs £10.49 a month with Copilot, compared with £7.99 for Family Classic.

Microsoft stopped offering the non-AI Personal and Family plans to new subscribers. Existing subscribers could switch to a Classic plan for a limited time.

When Microsoft announced the changes in January 2025, it said Copilot would become available to most of its 84 million consumer subscribers. The company also said existing customers with recurring billing could switch to a plan without Copilot or AI credits, including the new Classic plans.

“When a business changes its subscription plans, customers need clear and timely information about their options,” said Hayley Fletcher, senior director for consumer protection at the CMA.

The agency hasn’t concluded that Microsoft violated consumer law. Its initial investigation and evidence-gathering period is expected to continue through December 2026. The next case update is due by the end of the year.

A Microsoft spokesperson told Reuters that the company was reviewing the CMA’s claims and remained committed to working with the regulator.

Microsoft Faces Similar Scrutiny in Australia and Italy

The UK investigation follows action involving similar Microsoft 365 subscription changes in Australia and Italy.

The Australian Competition and Consumer Commission filed a Federal Court case against Microsoft Australia and Microsoft Corp. in October 2025. The ACCC alleges that approximately 2.7 million Australian subscribers weren’t told about the lower-priced Classic option when Microsoft communicated the Copilot integration and upcoming price increases.

According to the ACCC, customers were told they could accept the more expensive Copilot-inclusive subscription or cancel. The regulator alleges that subscribers could only find the Classic option after beginning the cancellation process.

Microsoft 365 Personal increased from AUD $109 to AUD $159 a year in Australia. The Family plan increased from AUD $139 to AUD $179.

The ACCC is seeking penalties, consumer redress, injunctions and other orders. The court hasn’t ruled on the allegations.

Italy’s Competition Authority opened a separate investigation in June 2026. The authority said information about the addition of Copilot and Microsoft Designer may have been presented in a fragmented way. It is also examining whether moving subscribers by default to a higher-priced plan limited customer choice.

The CMA hasn’t alleged that Microsoft concealed the Classic plan inside the cancellation process. Its investigation is focused on whether customers received enough information before renewal to understand the available plans and prices.

CMA Can Make Its Own Consumer-Law Findings

The investigation comes under the CMA’s expanded enforcement authority.

Since April 2025, the agency has had the power to decide whether a company violated consumer law without first taking the case through the courts. Companies found to have broken consumer protection law can face fines of up to 10% of worldwide turnover, or £300,000 when that amount is higher.

The worldwide-turnover calculation can include the broader corporate group, rather than only the UK or Irish entity named in an investigation.

Insider Take

The operator risk comes from the way these decisions work together. Microsoft added AI features, increased the renewal price and moved customers to the new plans unless they chose another option or canceled. Existing subscribers could also choose lower-priced Classic plans for a limited time.

That makes the communication of the customer’s full choice central to the regulatory scrutiny.

The Australian regulator alleges that subscribers could only find the Classic option after beginning the cancellation process. The UK investigation hasn’t made that allegation, but it is asking a related question: Did customers receive enough information before renewal to understand their options and the difference in price?

For subscription businesses adding AI, premium features or new service levels, renewal communications should explain what is changing, what the customer will pay and whether the existing service can continue without the added features.

Sources:

• Competition and Markets Authority: CMA Investigates Microsoft Over Marketing of Subscription Plans
• Competition and Markets Authority: Microsoft Consumer Protection Enforcement Case
• Competition and Markets Authority: Direct Consumer Enforcement Guidance Australian
• Competition and Consumer Commission: Microsoft 365 Subscription Proceedings Italian
• Competition Authority: Microsoft 365 Subscription Price Investigation
• Microsoft: Copilot Is Now Included in Microsoft 365 Personal and Family
• Reuters: UK Regulator Investigates Microsoft Over Microsoft 365 Subscriptions