Antitrust rejects Microsoft's offer on 365 price hike, investigation continues
Italy's competition watchdog has rejected the commitments Microsoft proposed to resolve an investigation into its handling of price increases for Microsoft 365 subscriptions. The Autorità Garante della Concorrenza e del Mercato (AGCM) informed the US technology group and other parties to the proceeding that the measures offered were inadequate to address the concerns raised when the investigation opened in June.
Why the measures fell short
The Authority identified several problems with Microsoft's proposal in a letter sent to the company. The information measures aimed at clarifying subscription changes came too late in the process, after the company had already decided to impose new contractual conditions. Microsoft had offered only the possibility — not a guarantee — that users could continue at the previous price, and only by forgoing AI services such as Copilot and Designer.
Regulators also found fault with how the changes were communicated. The new, more expensive subscription plan was presented as the default option. The AGCM described this as an "aggressive practice" that limited consumers' ability to make informed choices, a key protection under European consumer directives and Italy's Consumer Code.
Compensation deemed insufficient
Microsoft's offer included a restorative measure: three months of free subscription for users who downgraded to a cheaper plan. The Antitrust dismissed this as inadequate. The offer would reach only an "extremely limited number of consumers," according to the regulator, and its economic value appeared negligible compared to the price difference between the old rate and new one.
The price increase took effect in January 2025 and affected users upon subscription renewal. Buyers of the Personal and Family plans found themselves paying more for the same service, with AI features added and the higher-priced plan set as the default. Users in Italy were among those affected, though precise national figures have not been disclosed. Microsoft's global financial reports show an 11% revenue increase from consumer cloud products for the year, with 89 million subscribers worldwide paying more per user on average. In the United States, the Personal and Family plans rose by $3 per month. The Italian Authority noted that the compensation Microsoft offered was insignificant not only compared to what consumers paid, but also relative to the economic benefits the company gained from the practice.
What happens next
The rejection of the commitments does not conclude the case. The investigation, which began in June, continues and will determine whether Microsoft violated consumer protection rules. The AGCM has not yet issued a final ruling on the fairness of the company's conduct.
For consumers, this means the question of refunds or remedial action remains open. Subscribers who saw their renewal price rise after the January 2025 changes should be aware that the Authority may still order stronger measures if it finds a violation. The regulator's stance signals that information provided after the fact, and compensation that excludes most users, does not meet the standard set by Italian and European law for fair treatment of consumers in subscription services.
