Microsoft faces UK investigation over Copilot-related price increases

On July 29, the UK Competition and Markets Authority (CMA) launched an investigation into Microsoft (MSFT.US) to examine whether it led to users paying higher software subscription fees through misleading communication after integrating Copilot's artificial intelligence features into Microsoft365. CMA said the focus of the investigation was whether Microsoft clearly explained to users the changes in subscription plans and the price increase brought about by new features such as Copilot before renewing their subscriptions for Microsoft365(including Office software such as Word, Excel, and Outlook). According to CMA, Microsoft provided Copilot functionality to existing users for free last year, but automatically transferred users to new, higher-priced plans during subscription renewal. Higher fees will be charged unless the user actively changes plans or cancels the subscription. At present, CMA has not found that Microsoft has committed illegal activities. Microsoft could face fines of up to 10 percent of its global revenue if it is found to have violated consumer protection regulations.