Issued by: Competition and Markets Authority

Investigation will examine whether customers were misled about Microsoft 365 subscription options and paid more as a result.

The Competition and Markets Authority (CMA) has launched an investigation into Microsoft following concerns that customers may not have been given clear information upfront about subscription options when changes were made to Microsoft 365 Personal and Family plans – including adding new features such as Copilot.

This investigation focuses on changes made to these Microsoft 365 plans, which provide people across the UK with access to Word, Excel, PowerPoint, Outlook and Copilot, among other features. These plans can be purchased on a monthly or annual basis.

From January 2025, Microsoft automatically gave existing customers access to new features, such as Copilot, at no extra cost for the remaining subscription period. When the subscription ended, customers were automatically rolled on to a new plan with the additional features at a higher price, unless they took steps to either pick another plan or end their subscription. Microsoft stopped offering Personal and Family plans to new subscribers without these new features.

For existing customers on Personal and Family plans, Microsoft introduced a time-limited option to switch to a ‘Classic’ plan. Classic plans offered customers the same features they had access to before the changes, at the same price. For annual Microsoft 365 Personal and Family Plan customers, the new plan was £25 a year more than the Classic versions of these plans.

The CMA is looking into whether Microsoft’s communications with customers before renewal were misleading. 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.

At this stage, the CMA has reached no conclusions about whether Microsoft has broken the law. The CMA is strongly supportive of AI adoption and the benefits this could bring to real people’s lives across the UK but has emphasised that no-one should be treated unfairly. It’s also important that customers have clear information which helps them shop around and make choices about which AI products work best for them.

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.

"As people rely more and more on AI tools like Copilot, it’s important that everyone is able to access these through fair and transparent practices and understand when they have the opportunity to shop around and make choices about which products they want to use."

Since April 2025, the CMA has direct consumer enforcement powers which allow it to decide whether consumer law was breached rather than going through the courts. The CMA has so far secured more than £1.95 million in refunds for customers and levied fines close to £6.2 million using its new powers.

The Australian Competition and Consumer Commission [https://tinyurl.com/3ekwa3t9] and the Italian Competition Authority [https://tinyurl.com/2ts9nzfz] are separately investigating Microsoft entities on the information provided to customers when plans renewed.

Further information about the investigation can be found on the CMA’s website [https://tinyurl.com/2548akmd].

Notes to editors

1. The cost of the plan varied depending on whether customers chose a Classic or New subscription, and whether they opted for a Personal or Family package.

2. The Classic Microsoft 365 Personal plan costs £59.99 a year or £5.99 a month, compared with £84.99 a year or £8.49 a month for the New Microsoft 365 Personal plan.

3. The Classic Microsoft 365 Family plan costs £79.99 a year or £7.99 a month, while the New Microsoft 365 Family plan costs £104.99 a year or £10.49 a month.

4. The Australian Competition and Consumer Commission [https://tinyurl.com/3ekwa3t9] has commenced proceedings in the Federal Court alleging that Microsoft misled Australian customers when communicating subscription options and price increases after integrated Copilot into Microsoft 365 plans. The Italian Competition Authority [https://tinyurl.com/2ts9nzfz] is investigating whether Microsoft failed to provide consumers with sufficient information to assess changes made to their Microsoft 365 service and make an informed decision on whether or not to renew their subscription. It is also looking at whether Microsoft’s conduct constituted an aggressive practice.

5. The government consulted on changes to the legislative framework for subscription contracts under the Digital Markets, Competition, and Consumers Act 2024. The CMA’s investigation is separate to the government’s consultation and draws on existing and established legislation relating to unfair commercial practices.

6. If a company infringes consumer protection law, the CMA can fine them up to 10% of their global turnover (or £300,000 where this is higher than the 10% figure).

For media enquiries, contact the CMA press office.

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