Italy Opens Investigation into Microsoft 365 Over AI Bundling and Price Increases on June 26

According to Italy's Competition and Market Authority (AGCM), the regulator launched an investigation on Friday, June 26, into Microsoft's Irish and Italian subsidiaries over unfair business practices related to Microsoft 365 subscription pricing and AI tool bundling. AGCM alleges that Microsoft failed to adequately disclose the integration of Copilot and Designer AI tools into the service, providing consumers with fragmented information that prevented them from making informed renewal decisions. The authority also cited the automatic subscription upgrade mechanism, which enrolls users in higher-priced plans by default unless they actively opt-out, as an aggressive practice that restricts consumer choice and negotiating power. Microsoft 365's new pricing is set to take effect on July 1, 2026.
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