British regulator investigates whether Microsoft misled personal and family customers

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Personal and family customers were initially offered Copilot at no extra cost, but some later faced higher-priced subscriptions when renewing.

Personal and family customers were initially offered Copilot at no extra cost, but some later faced higher-priced subscriptions when renewing.

PHOTO: REUTERS

  • Britain's Competition and Markets Authority is investigating if Microsoft misled personal and family customers about Microsoft 365 subscription costs, especially regarding the AI assistant Copilot.
  • Some customers were initially offered Copilot for free but faced higher renewal prices, prompting concerns about clear information on plan options and costs.
  • Microsoft is reviewing the claims and cooperating with regulators amid multiple global probes into its business practices and customer communications.

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LONDON – Britain’s antitrust regulator said it would investigate Microsoft over whether it misled personal and family customers when marketing subscription plans for its ever-popular Microsoft 365 product, resulting in them overpaying.

The Competition and Markets Authority said on July 29 the probe would examine Microsoft’s addition of its AI assistant Copilot to Microsoft 365 subscriptions.

Personal and family customers were initially offered Copilot at no extra cost, but some later faced higher-priced subscriptions when renewing.

“The investigation will examine whether customers were given key information about the plans and the difference in cost to understand the options available to them before making a decision,” the CMA said in a statement.

The CMA said while it was supportive of AI adoption across the country, customers always needed clear and timely information.

“We are reviewing the CMA’s claims in detail,” a Microsoft spokesperson said, adding the company remained committed to “working constructively” with the regulator.

Microsoft faces numerous competition investigations globally, targeting its business software, cloud computing and AI partnerships, and Britain’s CMA launched a probe into its dominance in business software in May.

Authorities in Australia and Italy are also investigating Microsoft over the information provided to customers when plans renewed, the CMA noted. REUTERS

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