UK regulator investigates whether Microsoft misled personal and family customers


FILE PHOTO: A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File Photo

LONDON, July 29 (Reuters) - ⁠Britain's antitrust regulator said it would investigate Microsoft ⁠over whether it misled personal and family customers ‌when marketing subscription plans for its ever-popular Microsoft 365 product, resulting in them overpaying.

The Competition and Markets Authority said on Wednesday the ​probe would examine Microsoft's addition of ⁠its AI assistant Copilot ⁠to Microsoft 365 subscriptions. Personal and family customers were initially ⁠offered ‌Copilot at no extra cost, but some later faced higher-priced subscriptions when renewing.

"The investigation ⁠will examine whether customers were given key information ​about the ‌plans and the difference in cost to understand the ⁠options available ​to them before making a decision," the CMA said in a statement.

The CMA said while it was supportive of ⁠AI adoption across the country, customers ​always needed clear and timely information.

"We are reviewing the CMA's claims in detail," a Microsoft spokesperson said, adding the ⁠company remained committed to "working constructively" with the regulator.

Microsoft faces numerous competition investigations globally, targeting its business software, cloud computing and AI partnerships, and the UK's CMA ​launched a probe into its dominance ⁠in business software in May.

Authorities in Australia and Italy are ​also investigating Microsoft over the ‌information provided to customers when ​plans renewed, the CMA noted.

(Reporting by Muvija M, writing by Sarah Young, editing by Sam Tabahriti)

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