CMA gains direct consumer enforcement powers

The Competition and Markets Authority (CMA) has launched an investigation into Microsoft following concerns that customers may not have been given clear information upfront about subscription options when changes were made to Microsoft 365 Personal and Family plans, including the addition of features such as Copilot¹. The investigation was announced on 29 July 2026¹.

The CMA is looking into whether Microsoft's communications with customers before renewal were misleading, and whether customers were given key information about the plans and the difference in cost to understand the options available to them before deciding¹. At this stage, the CMA has reached no conclusions about whether Microsoft has broken the law¹.

The changes under scrutiny began in January 2025, when Microsoft automatically gave existing customers access to new features such as Copilot at no extra cost for the remaining subscription period¹. When the subscription ended, customers were automatically rolled on to a plan with the additional features at a higher price, unless they took steps to pick another plan or end their subscription¹. Microsoft stopped offering Personal and Family plans to new subscribers without these new features, and introduced a time-limited option for existing customers to switch to a "Classic" plan offering the same features as before at the same price¹. For annual Personal and Family customers, the plan with additional features was £25 a year more than the Classic versions¹.

The published prices are:

Source: CMA¹

Hayley Fletcher, Senior Director for Consumer Protection at the CMA, said:

Since April 2025, the CMA has direct consumer enforcement powers which allow it to decide whether consumer law was breached rather than going through the courts¹. The CMA says it has so far secured more than £1.95 million in refunds for customers and levied fines close to £6.2 million using its new powers¹. If a company infringes consumer protection law, the CMA can fine it up to 10% of global turnover, or £300,000 where that is higher than the 10% figure¹.

The Australian Competition and Consumer Commission and the Italian Competition Authority are separately investigating Microsoft entities over the information provided to customers when plans renewed¹. The Australian regulator has commenced proceedings in the Federal Court alleging Microsoft misled Australian customers about subscription options and price increases after integrating Copilot into Microsoft 365 plans, while the Italian authority is examining whether Microsoft failed to provide consumers with sufficient information to assess the changes and whether its conduct was an aggressive practice¹.

Why it matters for households

Microsoft 365 Personal and Family plans provide access to Word, Excel, PowerPoint, Outlook and Copilot, among other features, and can be bought monthly or annually¹. Households that held a Personal or Family subscription before January 2025 were moved on to plans with the additional features at renewal unless they chose otherwise, at £25 a year more than the Classic equivalents for annual customers¹. The CMA's investigation concerns whether the information given before renewal was clear enough for customers to understand the cost difference and their options¹. Any outcome applies to Microsoft's UK customers; the CMA has reached no conclusions, and no finding of a breach has been made¹. The CMA's powers, in force since April 2025, allow it to determine breaches itself and to impose fines of up to 10% of global turnover, or £300,000 where higher¹. The government has separately consulted on changes to the legislative framework for subscription contracts under the Digital Markets, Competition and Consumers Act 2024; the CMA says its investigation is separate from that consultation and draws on existing legislation on unfair commercial practices¹. More on how consumer regulation works is in our regulation and policy coverage.

What happens next

The CMA has opened the investigation and has reached no conclusions¹. Further information is published on the CMA's Microsoft consumer protection enforcement case page¹. The Australian proceedings and the Italian investigation are continuing separately¹.