Italy’s Competition and Market Authority (AGCM) has launched an investigation into Microsoft and Microsoft Ireland Operations over alleged unfair commercial practices. At the heart of the probe is how the tech giant communicated recent price increases for its "Microsoft 365" subscription service. According to the antitrust watchdog, the information was presented to consumers in a fragmented manner, failing to clearly explain that the price hike was tied to the integration of new AI features, namely "Copilot" and "Designer."

The regulator is also targeting Microsoft's decision to automatically opt users into the new, more expensive tier by default, leaving cancellation as their only way out. The AGCM argues this strategy deprived users of the clear information needed to make an informed choice about whether to renew. Massimiliano Dona, president of the National Consumers Union, strongly criticized the practice: "You cannot exploit consumer inertia—the natural tendency to leave pre-set options untouched due to a fear of bureaucracy or cognitive overload. This is a textbook use of status quo bias and the default effect, behavioral economics principles that should never be weaponized to manipulate the market."