Italian Competition Authority Investigates Microsoft 365 Price Transparency
The Italian competition regulator, AGCM, has launched an inquiry into Microsoft over concerns about the transparency of recent price increases for Microsoft 365 subscriptions. The investigation centers on how Microsoft communicated these changes, particularly following the integration of artificial intelligence (AI) features such as Copilot and Designer into its consumer software packages.
At the start of 2026, Microsoft restructured its Microsoft 365 offerings for private customers, which now include the AI-powered Copilot chatbot. This adjustment resulted in a notable price hike of approximately 30% for both Single and Family subscription plans. The annual cost for the Microsoft 365 Personal package rose from 69 to 99 euros, while the Family plan increased from 99 to 129 euros. Monthly rates also climbed, with Personal subscriptions moving from 7 to 10 euros and Family subscriptions from 10 to 13 euros.
The AGCM is scrutinizing whether Microsoft provided adequate and clear information about these changes. According to the authority, Microsoft's communication may have been fragmented, with insufficient disclosure that the price increases were tied to the addition of new AI functionalities. The agency is examining whether consumers were given clear options to object to or cancel the automatic transition to the updated subscription models, as users needed to actively opt out if they did not wish to accept the new terms.
Microsoft's approach is under review not only in Italy but also has implications for customers in Germany and Austria, as the AGCM suspects potential violations of European Union consumer protection regulations. Should the Italian authorities determine that Microsoft breached these rules, it could prompt similar actions in other EU member states. The examination targets Microsoft's subsidiaries in both Ireland and Italy, given the cross-border nature of the subscription services.
Internationally, Microsoft's practices have drawn criticism beyond the EU. In Australia, for instance, the national consumer watchdog has initiated legal proceedings against the company. The Australian authorities allege that, following the integration of Copilot, Microsoft substantially raised prices and failed to make less expensive, non-AI alternatives sufficiently visible to consumers.
Looking ahead, Microsoft has announced additional price increases for its business-oriented Microsoft 365 subscriptions, effective from July 2026. The company has indicated that all business variants of the M365 suite will be affected. The integration of Copilot enables users to generate text in applications such as Word, Excel, PowerPoint, Outlook, and OneNote, although Microsoft asserts that the typical customer is unlikely to exceed the standard usage limits. Furthermore, the AI-powered image editing tool Microsoft Designer has also been added to these packages.
The ongoing investigations and regulatory scrutiny underscore growing concerns among authorities regarding the communication of product changes and pricing strategies by major technology firms, especially when these changes involve automatic upgrades and significant cost adjustments for end users. The outcomes of the AGCM's investigation may set important precedents for how software companies inform their customers about subscription modifications and ensure compliance with consumer protection laws across the European Union.