UK Regulator Investigates Microsoft Copilot Bundling and Price Hikes
N.R. Finch
The UK's CMA has opened an investigation into Microsoft's Microsoft 365 subscription price increases, questioning whether customers were clearly informed when Copilot AI features were bundled in at a higher cost — with fines of up to 10% of global revenue on the table.
What did Microsoft do to trigger the probe?
Microsoft gave existing subscribers free access to Copilot AI features last year — but at renewal, automatically moved them to a higher-priced plan.
Customers who didn't actively downgrade or cancel paid the new price by default. This means → the default action was "pay more," not "choose after being informed."
In plain terms = free upgrade first, quiet price hike at renewal — silence equals consent.
What exactly is the CMA investigating?
The probe focuses on whether Microsoft's pre-renewal communications were misleading.
It covers the full Microsoft 365 suite (Word, Excel, Outlook) for both individual and business customers.
This means → the question isn't "can Microsoft raise prices?" but "did it explain the price hike clearly enough?" — a basic consumer-disclosure issue.
How has Microsoft responded?
Microsoft says it is "reviewing the CMA's claims in detail" and is "committed to working constructively with the regulator."
The CMA has not yet concluded that any law was broken; the investigation is ongoing.
This reflects a broader regulatory tightening on Big Tech's "default upgrade + auto-charge" pricing models.
What happens if a violation is confirmed?
The CMA can impose fines of up to 10% of Microsoft's global revenue.
In plain terms = Microsoft's FY2024 revenue exceeded $245 billion — 10% means a theoretical ceiling above $24.5 billion, a "nuclear option" level of deterrent.
This means → even if any eventual fine lands far below the cap, the investigation itself already pressures Microsoft's AI-bundling pricing strategy.
Content is for reference only, not financial advice.