UK Investigates Microsoft Over Price Hikes After Bundling Copilot into Microsoft 365

The UK's Competition and Markets Authority (CMA) has launched an investigation into Microsoft over concerns that it may have misled consumers regarding price increases for Microsoft 365 subscriptions after bundling Copilot. Similar regulatory investigations into Microsoft's subscription renewal practices have also been initiated in Australia and Italy. This investigation highlights growing regulatory scrutiny over how tech giants monetize AI features by bundling them into existing subscription models, potentially forcing consumers into higher-priced tiers. It also serves as a key test for the CMA's new direct enforcement powers, which allow the regulator to fine companies without going through court proceedings. Existing Microsoft 365 Personal and Family users were automatically transitioned to a new, Copilot-bundled plan costing £25 more per year in the UK unless they actively opted for a limited-time "Classic" plan to keep the old price. The CMA is investigating whether Microsoft failed to provide clear and sufficient information about these options and price differences before auto-renewing subscriptions.