CMA Investigates Microsoft 365 Over Buried Classic Plans After AI Price Hikes

What the CMA Investigates in the Microsoft 365 Pricing Shift

The UK Competition and Markets Authority (CMA) has opened a formal inquiry that mirrors the broader CMA investigates Microsoft 365 scrutiny currently underway across European markets. According to reporting from Neowin, the regulator’s primary concern centers on whether Microsoft adequately publicized the continued availability of Classic Microsoft 365 plans after rolling out significant price increases tied to Copilot AI integration. The CMA states that while the software giant did offer a limited-time Classic plan, it failed to ensure consumers and businesses were properly informed about the option during the checkout process. If the investigation concludes that Microsoft deliberately obscured these legacy pricing tiers, the regulator holds the statutory authority to impose penalties of up to 10% of the company’s global annual turnover.

The 2025 AI Price Hikes and the Classic Plan Shift

Microsoft’s decision to restructure its subscription pricing in 2025 was driven by the deep integration of Copilot, its generative AI assistant, into the core Microsoft 365 ecosystem. The company introduced new AI-enhanced tiers that bundled Copilot Pro and Copilot 365 features, alongside corresponding price adjustments across both consumer and commercial plans. While the AI-integrated options represented a clear strategic pivot, the transition left many existing subscribers navigating a suddenly complex billing landscape. The Classic plans, which deliver the traditional desktop and web applications without Copilot functionality, were retained but positioned in a way that made them difficult to locate during the checkout flow.

This structural shift effectively nudged users toward the higher-priced AI bundles, a tactic that has drawn regulatory scrutiny in multiple jurisdictions. The CMA’s position is that limiting the visibility of a previously standard offering during a major pricing overhaul crosses the line from product strategy into misleading commercial practice. Industry analysts note that similar pricing transitions have prompted antitrust reviews in the European Union and the United States, signaling that tech companies can no longer rely on ambiguous checkout architectures to drive upgrade conversion rates.

What This Means for You

For everyday users and small business administrators, the immediate takeaway is straightforward: you now have a regulatory backstop if you feel you were misled during the subscription upgrade process. The CMA’s probe signals that hiding or burying legacy pricing options is no longer a gray area in UK consumer protection law. If you recently renewed or purchased a Microsoft 365 subscription and found the Classic tier conspicuously absent from the default checkout flow, you may want to document the pricing screen you encountered. The investigation does not guarantee a refund or a plan change, but it does establish that regulators are actively monitoring how software vendors present tiered offerings during major product transitions.

What to Do If You Are a Current Subscriber

If you are currently on a Classic Microsoft 365 plan and want to lock in your existing rate, your best course of action is to avoid the standard upgrade prompts in the Microsoft account portal. Navigate directly to the Microsoft 365 subscriptions management page, select your active plan, and review the renewal terms before confirming. Microsoft has historically allowed Classic subscribers to renew at their current rate until their subscription term expires, though the exact wording in your account dashboard will reflect the most current terms of service. If you are evaluating a switch to an AI-integrated tier, carefully compare the Copilot usage limits and data processing policies against your actual workflow needs before committing to the higher price point.

The Regulatory Stakes for Microsoft

The potential 10% global turnover fine underscores how seriously the CMA is treating digital market conduct. For a company with Microsoft’s revenue scale, that penalty would represent a substantial financial blow and a notable reputational hit in European markets. This investigation also arrives as the CMA continues to sharpen its oversight of Big Tech pricing strategies, particularly in sectors where AI features are being used to justify premium subscriptions. The outcome will likely influence how other software vendors structure their own AI-driven pricing rollouts, setting a precedent for transparency requirements around legacy plan availability. Microsoft has not yet issued a formal response to the CMA’s inquiry, but the company has previously defended its pricing model by pointing to the substantial development costs associated with integrating large language models into enterprise and consumer applications.

Source: Neowin

Over to you: Will you stick with a Classic Microsoft 365 plan, or are you ready to adopt Copilot-integrated pricing?