UK competition authorities are focusing on Microsoft 365 subscriptions bundled with Copilot. Regulators are examining how the AI assistant moved from a free extra into a higher-priced default option for many UK customers.
The investigation leans on a parallel court case in Australia, and watchdogs are increasingly coordinating on AI-related consumer protection.
The UK Competition and Markets Authority confirms it is examining Microsoft’s pricing changes after Copilot’s integration into Microsoft 365. Its probe references court action by the Australian Competition and Consumer Commission, which challenges similar pricing behaviour in that market.
In early 2025, Microsoft rolled out Copilot to existing UK subscribers at no additional cost for the rest of their current term. When those contracts renewed, many accounts automatically shifted to a more expensive plan that formally bundled the AI tools.
Microsoft then withdrew the former basic Microsoft 365 plan for new customers, steering fresh sign-ups towards the Copilot-equipped tier. Existing customers did not lose all choice, but their options narrowed to either keep the AI-inclusive higher-priced plan or move to a time-limited “Classic” tier without Copilot.
The Classic plan came with a lower price but lacked the AI assistant features many organisations had begun testing. Regulators now examine whether those structures and default renewals gave customers meaningful consent or nudged them into paying more.
