Microsoft Under Scrutiny in Italy
News Desk
29 June 2026, 16:13
Microsoft is once again facing regulatory scrutiny in Europe, this time in Italy, where the country's competition watchdog has launched an investigation into changes to Microsoft 365 subscriptions. The regulator is examining whether Microsoft unfairly bundled artificial intelligence (AI) features into its productivity suite, increased subscription prices, and automatically moved customers to higher-priced plans without providing sufficiently clear information.
The probe comes just days after Microsoft found itself under regulatory review in the United Kingdom, underscoring the growing pressure the company faces as it rapidly integrates AI across its software ecosystem.
Italian Regulator Questions Microsoft's Subscription Changes
Italy's Competition Authority (AGCM) has opened an investigation into Microsoft Ireland Operations and Microsoft Italy over what it describes as a potentially unfair commercial practice.
According to the watchdog, the issue is not Microsoft's decision to add AI services such as Copilot and Designer to Microsoft 365. Instead, the investigation focuses on whether customers were clearly informed that these new features would come with higher subscription costs.
The authority alleges that information about the changes was presented in a fragmented manner and may not have made it sufficiently clear that subscribers would be upgraded to a more expensive plan by default unless they chose to opt out.
AGCM believes the practice may have prevented consumers from making informed decisions about renewing their subscriptions and is also examining whether the default upgrade process unfairly limited customer choice.
AI Rollout Raises Consumer Protection Questions
Over the past year, Microsoft has embedded Copilot into much of its software portfolio, including Microsoft 365, Windows and other productivity services, positioning AI as a core part of its future products. In several markets, however, the rollout has been accompanied by subscription price increases.
The Italian investigation highlights a broader regulatory challenge facing technology companies as AI becomes a standard feature in commercial software. Rather than questioning AI itself, regulators are increasingly examining whether companies are being transparent about pricing changes and giving consumers meaningful control over subscription decisions.
Another Regulatory Headache in Europe
The Italian investigation follows a separate probe launched earlier this month by the UK's Competition and Markets Authority (CMA), which is assessing whether Microsoft's business software ecosystem holds excessive market power.
The CMA is investigating whether businesses can effectively combine Microsoft's software with competing products or whether Microsoft's dominance limits competition and customer choice. If designated as having Strategic Market Status under the UK's Digital Markets regime, Microsoft could face additional obligations aimed at improving interoperability and promoting competition.
Together, the UK and Italian investigations reflect increasing regulatory scrutiny of Microsoft's expanding AI strategy. As major technology companies race to embed AI into their products, European regulators are paying closer attention not only to competition, but also to pricing transparency, consumer rights and fair commercial practices.
