The Competition and Markets Authority (CMA) has initiated an investigation into Microsoft due to concerns that customers may not have received clear information regarding subscription options for Microsoft 365 Personal and Family plans. This investigation is particularly focused on changes made to these plans, which include new features like Copilot.

Starting January 2025, Microsoft automatically provided existing customers access to new features at no additional cost for the remainder of their subscription. However, upon renewal, customers were transitioned to a higher-priced plan unless they opted for a different plan or canceled their subscription. Microsoft ceased offering the original plans to new subscribers without the new features.

To address customer concerns, Microsoft introduced a limited-time option for existing customers to switch to a 'Classic' plan, which maintained the previous features at the same price. However, the Classic plans were priced higher than the original plans, raising questions about transparency and customer understanding.

The CMA is investigating whether Microsoft misled customers regarding their options and the associated costs, emphasizing the importance of clear communication, especially in light of rising household expenses. The authority aims to ensure that consumers can make informed choices about subscription services.

Hayley Fletcher, Senior Director for Consumer Protection at the CMA, highlighted the necessity for clear information on pricing and subscription plans, particularly as reliance on AI tools like Copilot increases. The CMA's investigation is separate from ongoing inquiries by the Australian Competition and Consumer Commission and the Italian Competition Authority regarding similar issues.

Since April 2025, the CMA has had direct consumer enforcement powers, allowing it to address breaches of consumer law without court intervention. The CMA has already secured significant refunds for customers and imposed fines on companies for violations.