Italy investigates if Microsoft pushed users into pricier Copilot plans

The Italian competition authority is investigating whether Microsoft was clear when it raised the prices of some Microsoft 365 subscriptions. The probe focuses on whether the company adequately disclosed the addition of Copilot and other AI features before raising prices.

The Authorità Garante della Concorrenza e del Mercate (AGCM) has concerns that Microsoft may have failed to sufficiently clarify that some AI services, including Copilot, had been integrated into its Microsoft 365 subscription service.

“This information appears to have been provided in a fragmented manner, without making it sufficiently clear that the subscription service had been integrated with the ‘Copilot’ and ‘Designer’ artificial intelligence services,” the regulator states in a press release.

“Moreover, it seems that consumers were placed, by default, on a new subscription plan at a higher price, unless they exercised their right of withdrawal,” the AGCM continues.

By doing so, the competition supervisor begs to differ on whether Microsoft engaged in unfair trade practices. The agency believes customers may not have been properly informed and, therefore, may not have been able to make an informed decision about whether to renew their subscription.

“The way in which the information was communicated may also constitute an aggressive practice, as it appears to have unduly restricted consumers’ freedom of choice,” the AGCM concludes.

In January 2025, Microsoft added Copilot to its Microsoft 365 Personal and Family plans, making them more expensive. Existing users were able to switch to one of Microsoft’s Classic plans, which was essentially the previous subscription plan, but without Copilot and increased prices.

In a nutshell, Microsoft raised the prices of its subscription plans, and all current customers were automatically moved to the new plans unless they took matters into their own hands and switched back to a Classic plan.

Microsoft faced a similar case in Australia. In October 2025, the Australian Competition and Consumer Commission (ACCC) launched a lawsuit against the Redmond-based tech company for misleading millions of users into paying more for a “forced upgrade” scheme.

Last week, Microsoft issued an apology and offered refunds to eligible Microsoft 365 subscribers.

“We have been present in Australia for more than 40 years, operating on the principles of trust and transparency. We fell short of our standards here, and we apologize,” Microsoft said in a statement.