UK regulator probes Microsoft over copilot pricing

Britain's competition watchdog has opened an investigation into Microsoft over claims it misled personal and family customers when marketing Microsoft 365 subscription plans, resulting in some paying more than necessary.

According to the Competition and Markets Authority, on Wednesday, its investigation will be focused on the manner in which Microsoft incorporated its Copilot AI tool in Microsoft 365 subscriptions, which were free for individual and family users until they were offered an upgrade that required a price increase.

The regulator said it would examine whether customers were given the information they needed to understand their options and the cost difference between plans before deciding whether to renew.

While maintaining that it supported the use of artificial intelligence in the UK market, the CMA stated that customers had to be provided with appropriate information despite the speed at which new functionalities were being added to old products.

Microsoft stated that it would review the concerns of the CMA and would continue to cooperate constructively with the regulator.

However, this is not the first instance of Microsoft's clash with UK competition regulators this year. In May, a separate investigation was launched by the CMA against the company for its dominance in the software industry. 

Now, the tech giant faces competition investigations from various jurisdictions on issues such as cloud computing and AI collaboration.

According to the CMA, investigations similar to this one are also being conducted by the competition regulators of Australia and Italy.