Microsoft 365: Antitrust Launches Investigation into Price Increase Related to Copilot
The AGCM has opened an investigation against Microsoft Ireland Operations Ltd. and Microsoft S.r.l. for an alleged unfair commercial practice related to the price increase of Microsoft 365. At the center of the proceedings is the way in which the company allegedly informed Italian users about the price hike and its connection to the integration of AI services Copilot and Designer.
According to the Authority, the information was presented in a fragmented manner, without clearly highlighting the link between the new features and the increase in the price list. The behavior, as stated in the press release, could be contrary to consumer protection regulations, as Microsoft seems to have not provided sufficient information to assess the changes made to the service offered and, consequently, to make an informed decision whether to renew the subscription or not.
What the Antitrust Contest
The specific mechanism relates to the switch to new plans. Users would have been automatically moved to a more expensive subscription with Copilot activated as the default option, unless they explicitly chose to withdraw. On this point, the AGCM hypothesizes a second profile: the way information was communicated could also configure an aggressive practice, as it would have unduly restricted consumers' freedom of choice.
It should be clarified that the opening of the investigation does not equate to a finding of liability. It is the start of the phase in which Microsoft can present its defense, and the proceedings can conclude with a dismissal, acceptance of commitments, or a penalty. At the time of the announcement, the company had not issued a detailed public response.
The Numbers of the Price Increase and the Australian Precedent
The new prices for private users have been in effect in Italy since January 2025: Microsoft 365 Personal went from 69 to 99 euros per year, Family from 99 to 129 euros, representing an increase of 30 euros annually. The increase, which incorporates AI functionalities into the package, will take effect for renewals starting July 1, 2026. This operation is part of an international rollout that began in October 2024 in six countries (Australia, New Zealand, Malaysia, Singapore, Taiwan, and Thailand) and arrived in Italy a few months later.
Australia provides the most relevant precedent: the local competition authority, the ACCC, has sued Microsoft for similar behaviors, particularly for making the options for the Classic plans without Copilot less visible. In that case, the company subsequently apologized and refunded the affected users.
For those who want to avoid the price increase, a concrete option remains: the Classic plans without AI functionalities are still purchasable at the previous prices, with Personal Classic at 69 euros per year. It is an option that exists but, according to the Authority's reconstruction, would have been kept in the background while the more expensive plan was proposed as the default choice.