Italy launches probe into Microsoft 365 price increases linked to AI

Italy's competition regulator has started an inquiry into claims that Microsoft quietly moved Microsoft 365 subscribers onto higher-cost tiers after bundling in Copilot and Designer capabilities.

Italian regulator targets subscription practices. The Italian Competition Authority (AGCM) is examining the conduct of Microsoft Ireland Operations and Microsoft Italy. Officials are reportedly focusing on whether the company gave customers adequate notice that the new AI tools had been added and that bills would rise as a result.

The watchdog alleges the updates reached users through disjointed messages that did not clearly state what extra features were included in return for the increased fees. Customers were reportedly defaulted onto the more expensive plan and required to opt out if they wished to avoid paying more.

Watchdog cites potential consumer law breaches. "In the Authority's view, this conduct may be contrary to consumer rules, since Microsoft appears to have failed to provide consumers with sufficient information to assess the changes made to the service offered and, as a consequence, make an informed decision as to whether or not to renew their subscription," AGCM said. The authority also suggested the communication approach "may also constitute an aggressive practice, as it appears to have unduly restricted consumers' freedom of choice."

Microsoft pledges cooperation with probe. A Microsoft spokesperson told The Register the company "is committed to complying with Italian consumer law and will cooperate with the Italian Competition Authority in its preliminary investigation."

Probe arrives amid broader European scrutiny. The Italian action follows shortly after the UK's Competition and Markets Authority opened a strategic market status review of Microsoft's workplace software operations. That separate effort is examining bundling, licensing, interoperability and default settings as artificial intelligence tools spread through enterprise applications.

Microsoft has spent the past year weaving Copilot into just about everything it sells, from Microsoft 365 to Windows, with pricing following close behind.