Italy Investigates Microsoft Over Microsoft 365 AI Subscription Price Hike

Italy’s antitrust authority has launched an investigation into Microsoft over allegations of unfair commercial practices tied to the pricing changes for its Microsoft 365 subscription service. The probe focuses on whether the technology giant adequately informed customers about the integration of artificial intelligence features, including Copilot and Designer, before automatically moving users to a higher-priced subscription plan.

According to Italy’s competition watchdog, Microsoft failed to clearly notify consumers that AI-powered tools had been added to Microsoft 365, resulting in many subscribers being transferred to a more expensive plan unless they actively opted out. The regulator argues that users did not receive sufficient information to make an informed decision about renewing or modifying their subscriptions.

The authority also stated that Microsoft’s approach could be considered an aggressive commercial practice because it may have restricted consumers’ freedom of choice. By automatically enrolling customers into a costlier Microsoft 365 plan without providing transparent details about the AI integration and pricing changes, the company may have violated Italian consumer protection rules.

The investigation comes as regulators across Europe continue to closely examine how major technology companies introduce artificial intelligence features into existing products and subscription services. Authorities have increasingly emphasized the need for clear pricing disclosures, transparent contract terms, and explicit customer consent when businesses alter subscription plans or introduce additional paid features.

Microsoft responded by saying it intends to cooperate fully with the Italian Competition Authority during the preliminary investigation. A company spokesperson stated that Microsoft remains committed to complying with Italian consumer protection laws and will work with regulators as they review the matter.

The outcome of the investigation could have broader implications for subscription-based digital services, particularly as AI-powered tools become standard features across software platforms. The case also highlights growing regulatory scrutiny over how technology companies communicate subscription changes, price increases, and AI integrations to consumers throughout the European market.