Microsoft seems to be under trouble. Italy’s watchdog has opened an investigation into Microsoft over claims that the tech giant may have used unfair commercial practices while increasing the price of its Microsoft 365 subscription, as per Reuters.
The regulator believes that users were not clearly informed about the addition of AI features before they were moved to a more expensive plan. This probe focuses on whether Microsoft gave customers enough information to make an informed decision about renewing their subscriptions after AI-powered tools were added to the service.
Consumers Shifted To Higher-Priced Plans
Reportedly, Italy’s antitrust authority believes that Microsoft integrated AI tools such as Copilot and Designer into Microsoft 365 but did not properly explain the changes to users. The regulator said many consumers were automatically switched to a costlier subscription unless they actively chose to opt out.
Moreover, the watchdog also reportedly said Microsoft’s approach could be considered an aggressive commercial practice because it may have limited consumer’s freedom to make their own choices.
Responding to the investigation, Microsoft stated that it is committed to following Italian consumer protection laws and will cooperate with the country’s competition authority during the preliminary inquiry.
To recall, this investigation comes weeks after the UK’s Competition and Markets Authority (CMA) launched its own investigation into Microsoft’s position in the business software market.
Moreover, the British regulator is also examining whether Microsoft’s practice of bundling products such as Windows, Word, Excel, Teams, Copilot and other services gives the company an unfair advantage over rivals.
The CMA reportedly said it wanted to understand whether Microsoft’s market position is limiting competition and whether action is needed to ensure businesses continue to have access to choice, innovation and competitive prices.
Notably, the latest investigation in Italy highlights the growing concerns among regulators about how technology companies introduce AI features into existing products, especially when those changes affect pricing and consumer choice.
