Italy Investigates Microsoft 365 Price Hike Tied to Copilot

Italy Investigates Microsoft 365 Price Hike Tied to Copilot

Italy Investigates Microsoft 365 Price Hike Tied to Copilot

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Italy probes Microsoft 365 pricing after Copilot AI rollout, raising questions over renewals, non-AI options, and user choice in EMEA.

Written By
Liz Ticong
Liz Ticong
Jun 29, 2026

Microsoft’s Copilot rollout has become more than an AI upgrade. In Italy, it is now a question of subscription choice.

Italy’s competition authority is investigating whether Microsoft clearly informed Microsoft 365 users that Copilot and Designer had been added before subscriptions renewed at higher prices. The case could affect how AI features are bundled, priced, and presented to European consumers.

For users, the question is simple: should AI be a paid default inside an existing subscription, or a clearly marked option they can decline?

Italy scrutinizes the renewal path

Italy’s Competition Authority, known as AGCM, opened the case against Microsoft Ireland Operations Ltd. and Microsoft S.r.l. over alleged unfair commercial practices linked to Microsoft 365 subscription pricing.

According to AGCM, consumers may not have been told clearly enough that Copilot and Designer had been added to the service. Users also appeared to have been placed by default on a higher-priced plan unless they exercised their right of withdrawal, leaving them without enough information “to make an informed decision as to whether or not to renew their subscription.”

Microsoft said it would cooperate with the investigation, with a spokesperson saying the company “is committed to complying with Italian consumer law.”

Non-AI plans existed in some markets

Microsoft’s January 2025 consumer rollout added Copilot and Designer to Microsoft 365 Personal and Family in most markets worldwide. Copilot was added to Word, Excel, PowerPoint, Outlook, OneNote, and the Microsoft 365 Copilot app, while Designer brought AI image creation and editing features.

Pricing also changed, with the company raising Personal and Family plans by $3 per month in the US and applying the increase to existing subscribers at renewal.

The tech titan pointed some existing subscribers to non-AI options, including Basic and limited-time Classic plans. It acknowledged that some customers may not want AI included, saying subscribers could move to plans “without Copilot or AI credits.”

Classic plans were not universally available public plans and were not broadly offered across all EMEA markets. However, having these options shows that Microsoft has already separated AI and non-AI subscriptions, raising the direct question of why similar choices were not clearer for users in Italy and EMEA.

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European users could see tighter subscription notices

Italian consumers could see more prominent renewal notices, account-page warnings, or cancellation-flow options if AGCM presses Microsoft to change how AI-linked price increases are presented.

Across EMEA, the case gives regulators a way to question how AI add-ons are presented inside existing subscriptions. If non-AI routes exist in some markets, authorities can ask why users in other markets who face higher AI-included plans did not receive similar options or clearer instructions.

Software vendors can charge for AI features. European regulators may focus on whether subscribers had enough notice, price transparency, and a real way to decline before renewal.

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Liz Ticong

Liz Ticong is a technology writer specializing in artificial intelligence, cybersecurity, software reviews, and emerging business technologies. With more than a decade of professional writing experience and over five years contributing technology content for TechnologyAdvice, she helps readers understand complex technologies and evaluate the tools that best fit their needs. Liz has extensive experience researching, testing, and analyzing software platforms, AI tools, and technology solutions. Her work includes in-depth software reviews, buyer’s guides, product comparisons, and technology news coverage designed to help businesses make informed purchasing and implementation decisions. She regularly evaluates AI applications, automation tools, cybersecurity solutions, and business software, providing practical insights based on hands-on testing and research. In addition to her work with TechnologyAdvice, Liz has contributed technology content to leading industry publications, including eWeek and TechRepublic. Her background in technical writing and software analysis enables her to translate complex technical concepts into clear, actionable guidance for both business and technology audiences. Liz holds a bachelor's degree in Broadcast Communication from the Polytechnic University of the Philippines and continues to expand her expertise through ongoing education in artificial intelligence and emerging technologies. Through her writing, she helps readers navigate a rapidly evolving technology landscape with practical, research-driven insights and real-world product analysis.