Microsoft Probed in Italy Over Pricing of AI Bundles

Italy’s antitrust authority launched a probe into whether Microsoft priced its AI tools transparently within its Microsoft 365 subscription. The Italian Competition Authority said on Friday that it is investigating how Microsoft informed consumers about an increase in the Microsoft 365 subscription price, focusing on whether the company failed to clearly explain that AI features were bundled. It alleges Microsoft may not have made sufficiently clear that the subscription had been integrated with Copilot and Designer AI tools, and that consumers could have found it difficult to opt out of the higher price because these items were placed by default on a costlier plan. Microsoft did not respond immediately to a request for comment. The regulator said the investigation will assess potential breaches of consumer rules. The probe follows a separate case in Australia, where a watchdog sued Microsoft for allegedly not clearly telling existing Microsoft 365 subscribers how to decline paying for Copilot at annual renewals.