The CMA published the case record and a fuller announcement on July 29. It is examining whether Microsoft gave customers clear and timely information about plan changes, available alternatives and price differences before automatic renewal.

What the CMA is examining

The investigation focuses on Microsoft 365 Personal and Family plans. According to the CMA, existing customers began receiving Copilot and other added features during the remainder of their subscription period from January 2025. When the subscription ended, customers were automatically moved to plans with those additional features at a higher price unless they selected another plan or ended the subscription.

For existing customers, Microsoft introduced a time-limited option to switch to a Classic plan. The CMA is assessing whether customers understood those choices and the price differences before deciding whether to renew. The case concerns consumer disclosure and renewal practices, not Microsoft’s broader artificial-intelligence strategy or general position in the software market.

The price differences cited by the regulator

The CMA’s announcement lists annual U.K. prices of £59.99 for Classic Personal and £84.99 for Microsoft 365 Personal with the additional features. The monthly prices are £5.99 and £8.49, respectively.

For Family plans, the CMA lists £79.99 annually for Classic Family and £104.99 annually for Family with the additional features. The monthly prices are £7.99 and £10.49. The annual difference between each Classic plan and its feature-enhanced counterpart is £25.

Customers reviewing a renewal should check the exact plan name, the price that will be charged, the features included and whether a lower-priced Classic option is available before the renewal date.

No finding has been made in the U.K. case

The CMA has not concluded that Microsoft breached consumer law. The case remains open and is in its initial evidence-gathering phase, scheduled to run from July through December 2026. The case timetable says the next formal update is due by the end of 2026.

Reuters reported that Microsoft said it was reviewing the CMA’s claims and remained committed to working constructively with the regulator.

The CMA said that, since April 2025, it has had direct consumer-enforcement powers allowing it to decide whether consumer law was breached without first going through the courts. Those powers do not mean Microsoft has been found liable in this case; the investigation is still gathering evidence.

Similar scrutiny in Australia and Italy

The issue is also being examined in other markets. Australia’s Competition and Consumer Commission has commenced Federal Court proceedings against Microsoft Australia and Microsoft Corporation, alleging that the companies misled approximately 2.7 million Australian customers about subscription options and price increases after Copilot was integrated into Microsoft 365 plans. The ACCC is seeking remedies including penalties, injunctions, declarations and consumer redress. The proceedings remain allegations, not a final judgment.

Italy’s Competition Authority opened an investigation on June 26, 2026. It cited concerns that information about the price increase and the integration of Copilot and Designer was provided in a fragmented way, and that consumers were placed by default on a higher-priced plan unless they exercised their withdrawal rights. The Italian matter is an investigation, not a final infringement decision.

What subscribers should check

For consumers, the practical issue is what happens before the next billing date. Subscribers should review the renewal notice, confirm whether the plan name has changed, compare Classic and feature-enhanced options, and check the exact price that will be charged. They should also review cancellation deadlines and complete any change before automatic renewal.

Consumers should not assume that a plan change or added AI feature automatically requires acceptance of the higher-priced option. The available choices can vary by country, account and subscription status, so the renewal page and account settings are the controlling information for an individual customer.

The parallel regulatory actions do not establish that all Microsoft 365 customers worldwide were affected. They do show that regulators in several countries are examining the same broader consumer question: whether subscription companies clearly disclose added features, higher prices and alternatives before customers are automatically renewed.

What happens next

The CMA’s initial U.K. evidence-gathering phase runs from July through December 2026. The regulator is expected to provide its next case update by the end of 2026. Until then, the U.K. matter remains unresolved, and the CMA has made no finding that Microsoft broke consumer-protection law.

Sources

• UK Competition and Markets Authority case record
• Australian Competition and Consumer Commission court action
• Italian Competition Authority investigation