The CMA is investigating how Microsoft 365 got more expensive when Copilot arrived

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 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, 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.

When a subscription came up for renewal, Microsoft moved the customer onto a plan that included Copilot and cost more. To keep the old price, the customer had to switch to Microsoft’s “Classic” plan, which does not include Copilot. The alternative was to cancel.

Microsoft also stopped selling new customers a plan without Copilot.

Each plan costs more with Copilot:

• Microsoft 365 Personal costs £59.99 a year on the Classic plan or £84.99 with Copilot.
• Microsoft 365 Family costs £79.99 a year on the Classic plan or £104.99 with Copilot.

What the CMA is looking at

The CMA has reached no conclusions about whether Microsoft broke the law. It is investigating whether Microsoft told customers clearly and in good time:

• What each plan costs.
• How the plans differ.
• That they could stay on a cheaper plan without Copilot.

Hayley Fletcher is the CMA’s Senior Director for Consumer Protection. She said that it is “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 also fine a company up to 10% of its worldwide turnover. It gained these powers under the Digital Markets, Competition and Consumers Act 2024, which came into force in April 2025.

Other regulators are acting too

Microsoft faces similar action in other countries. The Australian Competition and Consumer Commission has started court proceedings alleging that Microsoft misled 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 you can do

If you have a Microsoft 365 subscription:

• Check which plan you are on and what it costs in your Microsoft account.
• If you do not use Copilot, see whether Microsoft still offers you a plan without it. The option to switch to a Classic plan was time-limited, so it may have closed.
• Cancel before your subscription renews if you do not want to pay the higher price.
• Report a problem to the CMA if you think Microsoft was not clear. The CMA cannot get your money back or take up an individual complaint.