Microsoft is being investigated by the UK's Competition and Markets Authority (CMA) over concerns that customers were misled when the company added Copilot AI features to Microsoft 365 subscriptions and raised prices. The probe centres on whether Microsoft gave customers clear and timely information about cheaper alternatives before they were automatically moved onto costlier plans at renewal, an issue that matters because it touches millions of subscribers and could set a precedent for how tech firms bundle AI features into existing services.

The changes date back to January 2025, when Microsoft added Copilot and other features to its consumer package; at renewal, customers were shifted onto a pricier tier unless they actively switched to a cheaper "Classic" plan or cancelled, with staying on the AI-equipped version costing £25 more a year. The CMA, whose consumer protection director Hayley Fletcher says the inquiry will examine whether customers "ended up paying more" without clear choice, follows similar scrutiny from a UK parliamentary committee and an apology extracted from Microsoft's Australian arm over the same issue. Microsoft says it is reviewing the CMA's claims and will work with the regulator, while the investigation remains at an early stage with no finding yet that consumer law was broken.