ROME, June 26 - Italy's competition watchdog said on Friday it has initiated a formal inquiry into Microsoft concerning alleged unfair commercial practices connected to a price rise for its "Microsoft 365" subscription service.
In its statement the regulator said Microsoft did not sufficiently inform customers that Microsoft 365 had been updated to include artificial intelligence features labeled Copilot and Designer. The watchdog said that, as a result of the change, users were automatically transferred to a more expensive subscription tier unless they took active steps to opt out.
Authorities added that the information consumers received was insufficient to make an informed decision about whether to renew their contracts with the service. The regulator characterized the conduct as potentially aggressive, arguing it unduly restricted consumers' freedom of choice.
The agency's concerns focus on communication and consent around the integration of new AI capabilities and the billing or subscription implications for end users. The inquiry centers on whether the company provided clear, timely and complete information that would allow customers to evaluate the change before being moved to a pricier plan.
Microsoft was not immediately available for comment, the watchdog noted.
Context and implications
The probe examines three core elements described by the regulator:
- Whether customers were adequately informed that Copilot and Designer had been integrated into Microsoft 365;
- Whether the company automatically migrated consumers to a higher-priced subscription unless they actively opted out;
- Whether the information provided around contract renewal was sufficient for consumers to decide on continuing the service.
The authority described the practice as possibly amounting to aggressive commercial behaviour because it could limit consumer freedom of choice.
What remains unclear
The regulator's action confirms an inquiry has begun, but the statement does not detail the next procedural steps, potential timelines, or any specific remedies it may seek. The company has not issued a response to the regulator's announcement at the time the watchdog reported the probe.
The investigation concentrates on the interaction between product changes that introduce new features and the communication and consent practices tied to subscription pricing and renewal.