The Italian Competition Authority (AGCM) has launched a formal investigation into Microsoft Ireland Operations Ltd. and Microsoft S.r.l. over alleged unfair and aggressive commercial practices regarding price increases for its “Microsoft 365” subscription service.
According to regulators, the tech giant failed to properly inform consumers about the financial and functional changes made to their accounts. The antitrust watchdog claims that information regarding the price hikes was presented in a highly fragmented manner. Crucially, Microsoft allegedly failed to highlight adequately that the core “Microsoft 365” service was being bundled with its newly integrated artificial intelligence tools, “Copilot” and “Designer.”
The authority is particularly concerned with how the subscription changes were executed. Instead of giving users an explicit choice to opt into the higher-tier AI features, a new, more expensive subscription plan was imposed on consumers as a default option. Existing users were automatically shifted to the premium pricing tier unless they proactively took steps to exercise their right of withdrawal and cancel the service entirely.
The AGCM stated that this conduct appears to run directly counter to European consumer protection laws. By failing to provide clear, upfront details, Microsoft denied users the sufficient information required to evaluate the modifications to their service. Consequently, consumers were unable to make an informed and conscious choice about whether renewing the contract at a higher price point was truly in their financial interest.
Furthermore, the consumer watchdog noted that this specific communication strategy borders on an aggressive practice. By automatically enrolling users into a costlier plan via default settings and spreading out the explanatory details, Microsoft unduly restricted the transactional freedom of its customers. The investigation will determine if the company’s actions constitute a formal breach of the consumer code.
