The CMA is investigating whether Microsoft 365 customers were told about a cheaper, Copilot-free plan
In January 2025 Microsoft added Copilot to Microsoft 365 and later raised prices at renewal for anyone who did not move to a cheaper plan without it. The CMA is now investigating whether Microsoft made the cheaper option clear, and it has reached no conclusions.
On 29 July 2026 the Competition and Markets Authority (CMA) opened an investigation into how Microsoft markets its subscription plans. The plans are Microsoft 365 Personal and Microsoft 365 Family, which include Word, Excel, Outlook and PowerPoint. The CMA is looking at whether Microsoft gave customers clear information about their options and the cost before it moved them onto a more expensive plan.
What Microsoft changed
In January 2025 Microsoft added its AI assistant, Copilot, and other new features to Microsoft 365 Personal and Family. People who already subscribed got Copilot at no extra cost for the rest of the term they had paid for.
At renewal, Microsoft moved each customer onto a plan that included Copilot and cost more. To keep the old price, a customer had to switch to Microsoft’s ‘Classic’ plan, which does not include Copilot. The other choice was to cancel. Microsoft also stopped selling new customers a plan without Copilot.
The annual prices are:
- Microsoft 365 Personal, £84.99 with Copilot, or £59.99 on the Classic plan without it
- Microsoft 365 Family, £104.99 with Copilot, or £79.99 on the Classic plan without it
What the CMA is looking at
The CMA has reached no conclusions about whether Microsoft has broken the law. It is checking whether Microsoft told customers, clearly and in good time:
- what each plan costs
- how the plans differ
- that a cheaper plan without Copilot was available
Hayley Fletcher, the CMA’s Senior Director for Consumer Protection, said that:
At a time when household budgets are squeezed, it’s important that people are clear on the price and the subscription plans available, so they can find the right deal for them.
The CMA can now decide whether a company has broken consumer law without going to court. It can fine a company up to 10% of its worldwide turnover, or £300,000 if that is higher. These powers come from the Digital Markets, Competition and Consumers Act 2024, whose consumer protection provisions came into force in April 2025.
Other regulators are acting
The Australian Competition and Consumer Commission (ACCC) has started Federal Court proceedings that accuse Microsoft of misleading Australian customers.
The Italian Competition Authority is investigating whether Microsoft gave people enough information and whether it pressured them into the more expensive plan.
What to do next
People who pay for Microsoft 365 can take a few steps.
- Check the current plan and its price in the Microsoft account, under Services and subscriptions.
- Ask whether Microsoft still offers a plan without Copilot. The switch to Classic was time-limited, so it might have closed.
- Cancel before renewal to avoid the higher price.
- Report the problem to the CMA if the plan choices were not made clear. The CMA cannot step in or advise on individual complaints.