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UK Watchdog Investigates Microsoft Over AI-Linked Subscription Pricing

By  |  August 2, 2026
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Britain’s competition and consumer watchdog has opened an investigation into whether Microsoft misled customers about higher-priced Microsoft 365 subscriptions after adding artificial intelligence features, according to reporting by Bloomberg.

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    According to Bloomberg, the U.K. Competition and Markets Authority is examining whether Microsoft’s communications with customers before their Microsoft 365 subscriptions renewed provided clear enough information about pricing changes tied to the addition of the company’s Copilot AI assistant.

    Bloomberg reported that Microsoft introduced Copilot features to existing Microsoft 365 subscribers at no additional cost before automatically moving renewing customers onto a more expensive subscription tier. Customers paid the higher price unless they selected a different plan or canceled their subscription, according to the publication.

    “The CMA is looking into whether Microsoft’s communications with customers before renewal were misleading,” the regulator said in a statement, as reported by Bloomberg.

    Related: UK Competition Regulator Opens Microsoft 365 Subscription Probe

    The Competition and Markets Authority said it has not reached any conclusions about whether Microsoft violated consumer protection laws. According to Bloomberg, the investigation is focused on whether customers received sufficient information to make informed decisions before renewing subscriptions for Microsoft 365, which includes applications such as Word, Excel and Outlook.

    Microsoft said it is reviewing the regulator’s concerns and intends to cooperate with the investigation. Bloomberg reported that a company spokesperson said Microsoft is “reviewing the CMA’s claims in detail” and is “committed to working constructively with the regulator.”

    If the regulator ultimately determines that Microsoft breached U.K. consumer law, Bloomberg reported that the Competition and Markets Authority has the authority to impose penalties of up to 10% of a company’s global revenue.

    Source: Bloomberg