UK watchdog investigates Microsoft over potential misleading practices tied to Copilot AI pricing

Via logo.com UK watchdog investigates Microsoft over potential misleading practices tied to Copilot AI pricing The CMA is probing whether Microsoft misled millions of customers into paying more for subscriptions they didn't need after bundling AI features. Share Add us on Google by Editorial Team Jul.

29, 2026 Microsoft is facing a formal investigation from the UK’s Competition and Markets Authority over allegations that the tech giant misled customers about the true cost of its software subscriptions after integrating Copilot AI into Microsoft 365. The CMA launched the probe on July 29, 2026, and it centers on a question that sounds almost too simple to be the basis of a regulatory action: did Microsoft make it hard for people to find the cheaper option? What Microsoft allegedly did Microsoft rolled out Copilot AI as a core feature of its Microsoft 365 plans, raising the US Personal plan price from roughly $69.

99 to about $99.99 annually. That’s a 43% price hike.

Existing subscribers reportedly received communications that made it seem like they had two choices: accept the pricier Copilot-included tier, or cancel their subscription entirely. What those communications apparently failed to make clear was that a third option existed, a “Classic” plan without Copilot at the original price point. Advertisement The CMA’s investigation is specifically examining whether this omission constitutes misleading marketing.

Microsoft has said it is committed to engaging with regulators and has outlined pathways for customers to opt back into Classic plans, though the transparency and adequacy of these options remain contentious points in the investigation. A global pattern emerges Australia’s Competition and Consumer Commission filed a lawsuit against Microsoft in October 2025, targeting what it called misleading practices affecting approximately 2.7 million customers.

Italy opened its own investigation in June 2026, adding a third jurisdiction to the growing list of regulators examining Microsoft’s subscription renewal practices. The CMA also has a broader, separate review underway. In May 2026, it launched a strategic market status investigation into Microsoft’s wider business software ecosystem.

Why crypto and tech investors should care Every major tech company, from Google to Apple to the growing number of crypto platforms integrating AI tools, is watching this case. Exchanges and DeFi platforms are increasingly bundling AI-powered features into premium tiers, from trading bots to portfolio analytics. The question of whether customers are being clearly informed about what they’re paying for, and whether cheaper alternatives exist, applies to Web3 just as much as it applies to Microsoft 365.

Microsoft’s stock performance could face pressure from regulatory uncertainty across multiple jurisdictions simultaneously. Any material fines or mandated changes to Microsoft’s subscription model could affect revenue projections, particularly for its cloud and productivity segments. Disclosure: This article was edited by Editorial Team.

For more information on how we create and review content, see our Editorial Policy. AI UK watchdog investigates Microsoft over potential misleading practices tied to Copilot AI pricing The CMA is probing whether Microsoft misled millions of customers into paying more for subscriptions they didn't need after bundling AI features. by Editorial Team Jul.

29, 2026 Share Add us on Google Via logo.com Microsoft is facing a formal investigation from the UK’s Competition and Markets Authority over allegations that the tech giant misled customers about the true cost of its software subscriptions after integrating Copilot AI into Microsoft 365. The CMA launched the probe on July 29, 2026, and it centers on a question that sounds almost too simple to be the basis of a regulatory action: did Microsoft make it hard for people to find the cheaper option?

What Microsoft allegedly did Microsoft rolled out Copilot AI as a core feature of its Microsoft 365 plans, raising the US Personal plan price from roughly $69.99 to about $99.99 annually.

That’s a 43% price hike. Existing subscribers reportedly received communications that made it seem like they had two choices: accept the pricier Copilot-included tier, or cancel their subscription entirely. What those communications apparently failed to make clear was that a third option existed, a “Classic” plan without Copilot at the original price point.

Advertisement The CMA’s investigation is specifically examining whether this omission constitutes misleading marketing. Microsoft has said it is committed to engaging with regulators and has outlined pathways for customers to opt back into Classic plans, though the transparency and adequacy of these options remain contentious points in the investigation. A global pattern emerges Australia’s Competition and Consumer Commission filed a lawsuit against Microsoft in October 2025, targeting what it called misleading practices af