A UK government committee is scrutinizing Microsoft for significant price increases on its 365 plans, prompting concerns about consumer transparency and competition. Chi Onwurah highlighted a stark contrast between the increases—42% for Personal and 31% for Family plans—against a modest 6% reduction the government secured. There's skepticism about users' lingering on classic plans, and the implications of Copilot's integration are under question, especially in light of previous antitrust issues Microsoft faced with EU regulators over Teams bundling. Microsoft attributes the hikes to inflation, rising costs, and significant product enhancements, particularly with Copilot features.
Chi Onwurah criticized Microsoft's significant price increases for 365 plans, contrasting it with the UK's 6% reduction and highlighting concerns about competition and transparency.
Onwurah emphasized the lack of clarity regarding reverting to classic plans, questioning if users can stay on these plans for more than a year.
Microsoft defends its price hikes by citing integration costs, inflation, and product enhancements, including the addition of Copilot features to 365 applications.
Regulators previously challenged Microsoft on competition grounds for bundling Teams with their Microsoft 365 offering, illustrating ongoing scrutiny over Microsoft’s practices.
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