The UK’s Competition and Markets Authority (CMA) has officially launched an investigation into Microsoft over whether the tech giant misled personal and family customers regarding price hikes linked to its Copilot AI assistant. Announcing the probe on July 29, 2026, the antitrust watchdog is examining if Microsoft used unfair practices to automatically migrate users to more expensive subscription plans without transparently displaying cheaper alternatives.
Core Focus of the CMA InvestigationThe Bundling Strategy: Microsoft bundled Copilot into its standard Microsoft 365 Personal and Family plans.Automatic Price Hikes: Following a time-limited free period starting in January 2025, users were automatically rolled onto higher-priced tiers upon renewal.Obscured “Classic” Options: Subscribers faced a £25 annual price increase unless they actively opted out and downgraded to a lesser-advertised, no-AI “Classic” plan.Consumer Clarity: The CMA Case Investigation Page states the probe will determine if customers were deprived of clear and timely information to make an informed choice.
The UK probe follows a growing wave of regulatory pushback against Microsoft’s auto-renewal tactics:Australia and Italy: The Australian Competition and Consumer Commission (ACCC) filed a Federal Court case against Microsoft for misleading 2.7 million users under a similar strategy, while Italy’s antitrust authority is investigating if the practice constitutes “aggressive conduct”.Potential Fine Exposure: The CMA noted that it has reached no conclusions yet.
However, if consumer protection laws are found to have been breached, the regulator holds new enforcement powers capable of levying a penalty of up to 10% of Microsoft’s global turnover.A Microsoft spokesperson responded to the announcement, stating that consumer trust and transparency remain top priorities and that the company will review the claims and work constructively with the regulator.