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

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. 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...