UK regulator investigates whether Microsoft misled personal and family customers

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)