CMA to investigate Microsoft over marketing of subscription plans

(Sharecast News) - The Competition and Markets Authority said on Wednesday that it has launched an investigation into Microsoft on concerns it may have misled customers about the cost of Microsoft 365 subscriptions. The competition watchdog highlighted concerns that customers may not have been given clear information upfront about subscription options when changes were made to Microsoft 365 Personal and Family plans. This includes adding new features such as Copilot.

Microsoft 365 provides people with access to Word, Excel, PowerPoint, Outlook and Copilot, among other features and the plans can be bought on a monthly or annual basis.

From January 2025, Microsoft automatically gave existing customers access to new features such as Copilot at no extra cost for the remaining subscription period. When the subscription ended, however, customers were automatically rolled on to a plan with the additional features at a higher price, unless they took steps to either pick another plan or end their subscription.

The CMA said it was looking into whether Microsoft's communications with customers before renewal were misleading. The investigation will examine whether customers were given key information about the plans and the difference in cost to understand the options available making a decision.

Hayley Fletcher, senior director for consumer protection at the CMA, said: "People across the UK rely on Microsoft 365, whether they're studying, sending emails or managing household finances.

"At a time when household budgets are squeezed, it's important that people are clear on the price and the subscription plans available, so they can find the right deal for them.

"When a business changes its subscription plans, customers need clear and timely information about their options. Our investigation will consider whether Microsoft customers were misled and ended up paying more as a result.

"As people rely more and more on AI tools like Copilot, it's important that everyone is able to access these through fair and transparent practices and understand when they have the opportunity to shop around and make choices about which products they want to use."