Fresh regulatory scrutiny has emerged for Microsoft in Italy after the country’s antitrust authority launched an investigation into the company’s subscription practices related to Microsoft 365 and its AI-powered features.
According to the regulator, Microsoft allegedly did not clearly inform consumers that its AI tools, Copilot and Designer, had been added to the standard Microsoft 365 subscription, resulting in higher subscription costs. The watchdog claims that existing users were automatically moved to a more expensive plan, while those who did not want the AI features or the increased charges had to manually opt out through their account settings.
The authority said consumers were provided with “insufficient information” to make an informed decision about renewing their subscriptions or accepting the revised pricing. It also warned that automatically shifting users to a higher-priced plan could be considered an “aggressive” commercial practice because it may limit consumers’ freedom of choice.
The investigation comes as European regulators continue increasing scrutiny of technology companies over the use of so-called “dark patterns” and subscription practices that may influence consumer decisions.
Microsoft, whose subscription-based software business is a major part of its global revenue strategy, has been integrating AI capabilities across its productivity products in recent months.
Responding to the investigation, the company said it intends to cooperate with the Italian authorities. A Microsoft spokesperson said, “Microsoft is committed to complying with Italian consumer law and will cooperate with the Italian Competition Authority in its preliminary investigation.”
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