CMA Investigates Microsoft Over Misleading Microsoft 365 Subscription Changes: Did You Pay More?

The Competition and Markets Authority (CMA) has launched an investigation into Microsoft over concerns that customers may have been misled about subscription options for Microsoft 365 Personal and Family plans. The probe focuses on changes made from January 2025, when Microsoft automatically added new features like Copilot to existing subscriptions at no extra cost for the remaining period, but then rolled customers onto a higher-priced plan at renewal unless they opted out.

Key Details of the Investigation

• Automatic upgrades: Existing customers were given access to Copilot and other new features for free until their subscription ended. At renewal, they were automatically moved to a more expensive plan unless they manually switched to a 'Classic' plan or cancelled.
• Classic plan option: Microsoft offered a time-limited 'Classic' plan with the same features as before at the original price. For annual subscribers, the new plan cost £25 more per year for Personal and £25 more for Family compared to Classic.
• Pricing comparison:
  • Classic Personal: £59.99/year or £5.99/month vs. New Personal: £84.99/year or £8.49/month
  • Classic Family: £79.99/year or £7.99/month vs. New Family: £104.99/year or £10.49/month
• Misleading communications: The CMA is examining whether customers were given clear, upfront information about the changes and the cost difference to make an informed decision.

CMA's Stance and Powers

Hayley Fletcher, Senior Director for Consumer Protection, stated: "At a time when household budgets are squeezed, it's important that people are clear on the price and the subscription plans available." The CMA has direct consumer enforcement powers since April 2025, allowing it to determine if consumer law was breached without going to court. It has already secured over £1.95 million in refunds and levied fines close to £6.2 million using these powers.

Global Context

Similar investigations are underway in Australia (by the ACCC) and Italy (by the Competition Authority), focusing on whether Microsoft misled customers about subscription options and price increases after integrating Copilot.

What This Means for You

If you are a Microsoft 365 subscriber, check your renewal terms. The CMA investigation underscores the importance of transparency in subscription marketing—especially when AI features are added. The outcome could lead to refunds or changes in how Microsoft communicates plan changes.

Note: The CMA has not yet concluded whether Microsoft broke the law.