On 29 July 2026, the UK Competition and Markets Authority (CMA) confirmed it is investigating whether Microsoft misled consumers into paying more for Microsoft 365 subscriptions by automatically moving them onto plans that bundled the AI assistant Copilot at a higher price. The regulator said it suspects customers “were not given clear information about subscription options when changes were made,” according to a report by Perspective Media.

The CMA’s announcement elevates a simmering consumer gripe into a formal enforcement inquiry. At stake is whether Microsoft’s communication around the January 2025 product revamp broke consumer law by obscuring the price jump tied to Copilot. This is not a generic renewal-pricing dispute. It is a very specific look at how a tech giant packaged a value-add—AI—and whether the rollout tricked loyal subscribers into swallowing a £25 annual increase without realising they had a choice.

The AI Bundling That Triggered the Probe

In January 2025, Microsoft added Copilot to its Microsoft 365 Personal and Family plans. Existing subscribers received access to the AI features for the remainder of their paid term at no extra cost. The catch came at renewal. When the subscription rolled over, customers were automatically migrated onto a new, more expensive plan that included Copilot—unless they manually opted out.

The escape hatch was a time-limited “Classic” plan. That tier retained the pre-Copilot feature set at the old price. For annual Personal and Family subscribers, the new plan cost £25 more per year, the CMA noted. Monthly subscribers faced a proportionate hike. The regulator stated that customers “were offered a time-limited option to switch to a Classic plan,” implying that window has since closed for many.

Hayley Fletcher, senior director for consumer protection at the CMA, said: “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.”

Microsoft, for its part, said consumer trust is a priority and it is reviewing the CMA’s claims while cooperating with the inquiry.

Who Is Affected—and How to Check Your Plan

This investigation directly targets consumer subscriptions, not Microsoft 365 commercial agreements. If you hold a Microsoft 365 Personal or Family plan in the UK, you might have been auto-migrated without a clear understanding of the price change. The risk is highest for those who signed up through discounted introductory offers and later found their renewal price was higher than expected, partly due to the Copilot bundle.

To check your status: log into your Microsoft account and navigate to Services & subscriptions (account.microsoft.com/services). Look for the plan name: if it says “Microsoft 365 Personal” or “Microsoft 365 Family” without the word “Classic,” and you never actively chose to keep Copilot, you may have been moved onto the pricier tier. Note the renewal date and the recurring billing toggle.

If you are on the new plan and would rather return to the Classic version, Microsoft’s website may still allow you to switch, depending on when your current term ends. Search for “switch to Classic plan” on Microsoft’s support page. If the option is gone, disabling recurring billing effectively cancels the auto-renewal without cutting off access until the paid period expires. You can then decide to let the subscription lapse or look for alternative plans.

Organisations that reimburse employees for home-use Microsoft 365 subscriptions may want to clarify who bears the extra cost. IT admins can advise staff to check their plan type and turn off recurring billing if corporate policy doesn’t cover AI add-ons.

The Road to Regulatory Scrutiny

The CMA’s action is not an isolated event. It lands against a backdrop of intensified oversight of auto-renewal practices in the UK. The regulator’s consumer protection guidance demands that businesses present key contractual terms clearly and bring renewal conditions to customers’ attention in time to cancel. Even technically accurate information can be deemed misleading if the overall presentation nudges consumers into a decision they wouldn’t otherwise make.

Microsoft’s Copilot rollout is a textbook case for that guidance. Giving existing subscribers a free taste of AI, then automatically locking them into a higher price at renewal unless they took affirmative steps to opt out, is the kind of “negative option” practice that consumer watchdogs increasingly frown upon. The CMA’s investigation suggests that Microsoft’s communications—emails, in-app notifications, account page wording—may have failed to convey the choice and its financial consequences.

This isn’t the first time subscription pricing has landed a tech giant in hot water. Apple faced similar regulatory heat over auto-renewal disclosures, and Amazon’s Prime cancellation process was targeted by European consumer groups. For Microsoft, the probe adds to a growing list of regulatory challenges in the UK and EU, from cloud licensing to Activision Blizzard’s acquisition.

Your Next Move: Audit, Cancel, or Wait

Uncertainty over the investigation does not mean you should wait passively. Here are concrete steps, depending on your situation:

  • Audit your subscription now. Log in to your Microsoft account and note your plan name, price, and next billing date. If you are on a Copilot-inclusive plan at a price higher than what you originally signed up for, flag it.
  • Try switching to Classic. If your subscription hasn’t renewed under the new plan yet, or if Microsoft still offers a switch path, do it immediately. The Classic plans do not include Copilot but keep all other features at the pre-2025 price. If the switch isn’t available, you may have to cancel and re-subscribe; be sure to compare pricing before doing so.
  • Disable recurring billing. This is the simplest way to stop future charges without losing access mid-term. Go to Services & subscriptions, find your plan, and toggle “Turn off recurring billing.” You’ll retain access until the expiry date shown.
  • Consider alternatives. If you don’t need the cloud features or AI, a one-time purchase of Office 2021 (with traditional Word, Excel, PowerPoint) might be more cost-effective. However, it won’t receive feature updates and has a fixed support lifecycle.
  • Monitor the CMA’s case. If the regulator finds wrongdoing, it could force Microsoft to offer refunds or credits to affected consumers. Keep an eye on CMA press releases and Microsoft’s official blog for updates. No compensation is guaranteed today.

For IT professionals, review your organisation’s expense policies. If you’ve been reimbursing employees for Microsoft 365 without checking the plan type, you may have inadvertently paid for AI services that neither the company nor the employee wanted. A quick internal advisory can prevent future friction.

What Comes Next for Subscribers

The CMA has reached no conclusions yet, and investigations of this nature can drag on for months. Microsoft is cooperating, but if the regulator finds that consumers were misled, it could order changes to how the company presents subscription options and prices—not just in the UK but potentially as a template for other jurisdictions. Financial penalties or compensation schemes are possible, though far from certain.

For Microsoft, the stakes are larger than one product. Copilot is a cornerstone of its AI monetisation strategy, and how it bundles AI into existing subscription services will be scrutinised globally. A forced rollback or clearer separate pricing might slow adoption of AI features among the very users Microsoft is counting on to justify the investment.

Subscribers, meanwhile, can take immediate control by reviewing their account now. The CMA’s investigation may eventually deliver remedies, but the surest way to avoid an unwanted £25 price hike is to check your plan today.