Italy’s competition authority, the Autorità Garante della Concorrenza e del Mercato (AGCM), has launched an official investigation into Microsoft over alleged unfair commercial practices tied to the company’s recent price increases for Microsoft 365 subscriptions. The probe, announced on June 26, 2026, zeroes in on whether the tech giant improperly obtained consumer consent when it automatically moved millions of subscribers to higher-priced plans that bundled AI features such as Copilot and Designer without clear, upfront disclosure.

The AGCM’s preliminary assessment suggests that Microsoft may have violated multiple provisions of the EU’s Consumer Rights Directive and Italy’s Codice del Consumo. At the center of the investigation is the manner in which the Redmond-based company integrated its generative AI assistant, Microsoft Copilot, and the AI-powered graphic design tool, Microsoft Designer, into existing consumer and small business plans while simultaneously hiking subscription fees by as much as 40%.

The 2025 Price Overhaul That Sparked Backlash

Microsoft 365 subscribers have grown accustomed to periodic price adjustments, but the move announced in January 2025 was different. The company declared that starting March 2025, Microsoft 365 Personal would jump from €7 to €10 per month, and Family from €10 to €13 per month in Italy, aligning with similar increases across the European Union. The stated reason: new AI capabilities that would now be included by default.

Initially, Microsoft offered a lifeline: users could switch to “Classic” plans—stripped of Copilot, Designer, and other AI features—at the old price point. However, the transition process drew immediate criticism. Many users reported that notifications landed in their email clutter folders, while others claimed the in-app prompts were ambiguous, using language like “Upgrade your plan to continue with AI benefits” without clearly stating that a price increase had already taken effect.

By mid-2025, Italian consumer organizations had compiled thousands of complaints. Subscribers described waking up to bank statements showing inexplicably higher charges, with some citing difficulty even locating the Classic plan option. The AGCM’s investigation is now examining whether the opt-out journey constituted an unfair commercial practice by design.

Under EU law—specifically Directive 2011/83/EU on consumer rights—any material change to a subscription contract, including a price increase, requires the consumer’s explicit, informed consent before it can be applied. Silence or inaction cannot be assumed as agreement. Italian legislation further reinforces this with strict rules against aggressive commercial practices.

The AGCM suspects Microsoft employed what investigators call “tacit renewal” or negative consent: the lack of a deliberate opt-in was treated as acceptance. In a statement, the authority noted: “When a company fundamentally alters the economic terms of an ongoing contract, consumers must be presented with a clear, simple, and immediate way to either accept the alteration or terminate the contract without penalty. Our initial review indicates Microsoft’s implementation may have fallen short.”

Investigators will scrutinize the actual email notifications, in-app banners, and the dashboard used for subscription management. They will assess font sizes, color contrasts, the number of clicks required to decline the price increase, and whether any pressure tactics—such as countdown timers or alarming warnings about losing access—were deployed. Such design elements, often called “dark patterns,” have been the subject of previous AGCM rulings.

Copilot and Designer: What’s Really in the Bundle

For the uninitiated, Microsoft Copilot is a generative AI assistant that works across Word, Excel, PowerPoint, and Outlook. It can draft documents, analyze data in spreadsheets, design slide decks, and summarize email threads. Designer is a tool that leverages DALL·E-based image generation to create graphics, social media posts, and marketing materials from natural language prompts. Both are part of Microsoft’s broader AI subscription strategy.

But not every user wants or needs them. Small business owners, students, and families on fixed budgets have expressed frustration at being forced to pay for features they didn’t request. The Italian investigation, however, is not about the utility of AI. “This is a procedural matter,” explained Marco Pierani, director of consumer group Altroconsumo, which has been instrumental in pushing for the probe. “It’s about whether Microsoft respected its customers’ right to choose. You cannot change the deal ex post facto and bury the exit door.”

A Pattern of Aggressive Monetization?

The AGCM is no rookie when it comes to tackling Big Tech. In 2023, it fined a major streaming platform for misleading renewal disclosures. Earlier in 2026, it concluded a case against a cloud storage provider for using dark patterns to upsell premium plans. Microsoft now joins a growing list of corporations facing heat in Europe over subscription tactics.

The current action also comes amid heightened EU regulatory activity. The Digital Services Act (DSA) and the Unfair Commercial Practices Directive provide additional backing for enforcement. Legal experts suggest that if the AGCM finds that Microsoft’s consent mechanisms were deceptive, the case could set a precedent for how AI-driven feature bundling is treated under EU law.

Microsoft’s Response and the Road Ahead

As of the investigation’s opening, Microsoft had not issued a formal comment. The company has historically pointed to the availability of Classic plans and emphasized that it gave customers flexibility. In a blog post from early 2025, Microsoft stated it was “committed to providing choice and transparency,” noting that users could switch plans at any time through their Microsoft Account.

But the AGCM seems unpersuaded. The investigation will involve detailed document requests, interviews with product and marketing teams, and possibly a formal hearing. If the authority rules against Microsoft, penalties could be severe. Fines can reach up to €10 million, or for larger entities, a percentage of global annual turnover—potentially hundreds of millions. Additionally, the AGCM can order corrective measures, such as mandatory refunds for affected subscribers and a simplified, one-click downgrade process.

The probe is expected to last several months, with preliminary findings likely by early 2027. Other EU member states are watching closely. A damning conclusion could trigger coordinated actions by consumer protection agencies across the bloc, much like the wave of GDPR enforcement that followed initial landmark decisions.

What Italian Consumers Can Do Now

While the investigation unfolds, affected users have options. The AGCM encourages individuals who believe they were unfairly charged to file complaints via its online portal. Documentation—screenshots of notifications, email timestamps, and billing statements—can strengthen cases. Consumer groups like Altroconsumo are also organizing collective actions, which could lead to class-action style remedies under Italian law.

Microsoft currently lists the Classic plans on a dedicated support page, but the path to downgrade remains convoluted. Users must navigate to their Microsoft Account, select “Manage subscription,” scroll past multiple upsell offers, and specifically choose “Switch to a plan without AI features.” The AGCM has hinted that this entire flow will be examined for compliance with consumer protection standards.

The Bigger Picture: AI Bundling Under Regulatory Scrutiny

The Italian investigation transcends Microsoft. As generative AI becomes a standard component of productivity software, the line between a helpful free update and a forced upsell is growing thinner. Google has so far kept advanced AI features optional in Google One or Workspace tiers. Adobe, after its own 2024 terms-of-service scare, has taken a more cautious approach. Microsoft, however, chose to integrate Copilot at the baseline subscription level—and raised prices accordingly.

Analysts argue that the case could force a rethink of how software companies communicate AI-driven value. “If you’re going to increase a recurring charge by 40% and attribute it to AI, you had better make sure the customer explicitly agrees,” said Elena Cortesi, a Milan-based technology policy advisor. “Otherwise, it’s a reputational and legal sinkhole.”

For now, the spotlight is on Redmond. The outcome may very well dictate how the industry approaches AI feature bundling in subscription products. One thing is certain: silence will no longer be accepted as consent. The AGCM’s move signals that European regulators are prepared to pierce the veil of shiny new technology to protect consumer wallets.

WindowsNews.ai will continue to monitor this developing story.