UK Regulator Probes Microsoft Over 365 Price Rises and Copilot Bundling
The Competition and Markets Authority (CMA) is investigating how Microsoft raised subscription prices for its 365 plans and bundled in its AI assistant, Copilot, and whether customers were adequately informed about these changes.
July 29, 2026 – 2:19 pm
The CMA’s probe focuses on the marketing of Microsoft’s 365 subscriptions, not the technology itself, adding to a series of challenges for the company in the UK. Microsoft already faces a strategic market status inquiry into its business software from the CMA.
The subscription issue began in early 2025 when Microsoft added Copilot to its 365 Personal and Family plans at no extra charge but then moved customers to more expensive plans including Copilot upon renewal unless they opted out. A cheaper option existed, but was hard to find. Customers could switch to a “Classic” plan without Copilot, but Microsoft stopped offering these plans to new customers and didn’t make the alternative clear to existing ones.
The CMA highlights a £25 price gap between the UK’s annual Personal plan with Copilot (£84.99) and the Classic version (£59.99). Similarly, the Family plan saw a price increase upon gaining Copilot. This change affected a large number of UK households using 365 subscriptions.
The regulator is concerned about disclosure, questioning whether Microsoft provided clear and timely information to customers about their renewal options.
"When a business changes its subscription plans, customers need clear and timely information about their options," said Hayley Fletcher of the CMA.
The legal basis for the investigation rests on existing consumer protection laws covering unfair commercial practices, not the newer Digital Markets, Competition and Consumers Act.
This case is more personal than broader market inquiries, focusing on individual household bills and unexpected price rises upon renewal. Microsoft faces regulatory challenges in several countries regarding auto-renewing subscriptions and added features.