Italy’s antitrust authority has opened a formal investigation into Microsoft over allegations that the company unfairly increased the price of Microsoft 365 subscriptions by bundling its AI-powered Copilot and Designer features into consumer plans. Regulators are examining whether Microsoft failed to clearly inform customers about the higher subscription costs and whether users were given a fair opportunity to choose a lower-priced version without AI. The investigation focuses on potential violations of Italy’s consumer protection laws related to pricing transparency and automatic subscription renewals. Microsoft has stated it is cooperating with the probe and remains committed to complying with Italian regulations. The case could set an important precedent for how software companies price AI-powered subscription services, as governments worldwide increase scrutiny of AI-related upgrades and consumer pricing practices.