Italy's antitrust watchdog opens probe into Microsoft over AI-bundled 365 price hike
The Italian Antitrust Authority has opened an investigation into Microsoft for allegedly failing to clearly inform consumers about a price rise tied to Copilot and Designer AI features, and for defaulting them to higher-cost subscriptions.
The allegations
Italy's competition and market authority (AGCM) announced on 26 June 2026 that it had opened an investigation into Microsoft Ireland Operations Ltd. and Microsoft S.r.l. for alleged unfair commercial practices. The probe centres on the price increase for Microsoft 365 subscriptions, which the company linked to the integration of artificial intelligence services Copilot and Designer. According to the AGCM, information about the change was presented in a fragmented manner, without adequately highlighting the addition of AI features.
Microsoft would not have provided users with sufficient information to understand the changes made to the service offered and, as a result, to make informed and conscious choices about whether or not to proceed with the contract renewal.
The regulator further claims that consumers were forced onto a new, more expensive subscription plan as the default option, subject only to a right of withdrawal. The authority argues this default mechanism stripped users of genuine choice.
Regulatory action
Officials from the AGCM, supported by the Guardia di Finanza's special antitrust unit, carried out inspections at the premises of the companies under investigation. The probe will examine whether Microsoft violated the Consumer Code regarding transparency and fairness in commercial practices. The authority stated that the same communication mode would also constitute an aggressive practice because it would have unduly compressed the negotiating autonomy of consumers.
The same communication method would also constitute an aggressive practice because it would have unduly compressed the negotiating autonomy of consumers.
Company response
Microsoft, through its Irish operations and Italian subsidiary, has indicated that it will cooperate with the authority during the course of the investigation. No further details on the specific price increase or the number of affected subscribers have been disclosed. The investigation is at an early stage and no formal finding of wrongdoing has been made.
