The UK Competition and Markets Authority (CMA) has opened an investigation into Microsoft over concerns that customers were misled about subscription options for Microsoft 365 personal and family plans and may have paid more as a result.
From January 2025, Microsoft automatically gave existing customers access to new features, including its AI service Copilot, at no extra cost for the remainder of their subscription period. After that period ended, customers were automatically rolled onto a new plan with these features at a higher price unless they chose a different plan or cancelled their subscription.
Classic plan option
Existing customers were offered a time-limited opportunity to switch to a "Classic" plan, which had the same features as before the changes at the same price. The CMA noted that annual customers on the new Microsoft 365 Personal and Family Plan paid £25 more than the Classic version.
The regulator is examining whether Microsoft's communications with customers before renewal were misleading. It has not reached any conclusions about whether the company broke the law.
Consumer concerns
Hayley Fletcher, senior director for consumer protection at the CMA, said: "People across the UK rely on Microsoft 365, whether they’re studying, sending emails or managing household finances. At a time when household budgets are squeezed, it’s important that people are clear on the price and the subscription plans available, so they can find the right deal for them. When a business changes its subscription plans, customers need clear and timely information about their options. Our investigation will consider whether Microsoft customers were misled and ended up paying more as a result."
A Microsoft spokesman said: "Consumer trust and transparency are priorities for Microsoft, and we are reviewing the CMA’s claims in detail. We remain committed to working constructively with the regulator as their inquiry progresses."
