Large global technology company under investigation by the CMA over its subscription plans

The Competition and Markets Authority (CMA) has launched an investigation into the company following concerns about its subscription options.

The investigation will focus on changes made by the company to its subscription plans to ensure that customers are given clear information upfront about their subscription options before renewal.

As part of a promotion, the company gave its existing customers access to new AI features as part of their subscription at no extra cost for the subscription period. However, following the end of the subscription period, the same customers were enrolled on to a plan with the additional features that they did not initially select.

The company provided customers with a short grace period where they were able to select a plan without the additional features. Whilst the CMA assures that it supports the accessibility of AI, it also emphasises the importance of customer understanding of the contents of a subscription plan before renewal.

The investigation indicates the CMA’s appetite for enforcement with subscription-related matters ahead of further changes to requirements for subscription plans under the Digital Markets, Competition, and Consumers Act 2024 due in 2027.

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