Italy’s antitrust watchdog has opened an investigation into Microsoft’s recent price increases for its Microsoft 365 subscription services, focusing on whether the company clearly disclosed the integration of new artificial intelligence tools within its product bundle. The Italian Competition Authority (AGCM) is probing potential unfair commercial practices tied to how Microsoft presented these changes to customers.
At the core of the inquiry is Microsoft’s inclusion of AI-driven services, specifically Copilot and Designer, within Microsoft 365. AGCM is examining whether these additions were transparently communicated to users and if the subscription price hike was justified and clearly explained. The regulator noted that the information leading up to the price adjustment was fragmented and may have limited customers’ ability to make informed choices—such as renewing, downgrading, or switching plans before the new pricing took effect.
Microsoft had announced the updated pricing and packaging for selected commercial Microsoft 365 suites late last year, with changes scheduled to start mid-2026. The hike affects several key products, including Office 365 E3, Microsoft 365 E3 and E5, Business, Frontline plans, and standalone offerings like EMS and Windows. The company presented this price adjustment as part of a broader product upgrade, highlighting new AI features alongside security and management improvements as drivers of increased value.
For many enterprise, education, and public-sector customers, the issue extends beyond just higher fees. Because Microsoft 365 suites are essential digital infrastructure, even modest price increases can significantly impact operational costs across large organizations. AGCM’s probe could influence how AI-enhanced software products are marketed and priced across Europe, potentially strengthening transparency requirements for subscription services featuring bundled technologies.
The Italian investigation aligns with AGCM’s recent pattern of intensified scrutiny over digital markets, reflecting ongoing enforcement actions against major technology and online platforms. How this case develops may inform broader regulatory approaches within the European Union regarding AI integrations and customer consent in subscription-based software services.