Microsoft will provide customers with more information on how to automatically renew Xbox online gaming subscriptions, Britain’s competition watchdog said on Wednesday. The UK’s Competition and Markets Authority (CMA) has struck a deal with Microsoft that requires the tech giant to notify users in advance of automatic renewals for Xbox Live and Game Pass services, which start at £7 ($9.50) a month.
The CMA said clearer information could prevent players from being billed for services they no longer use. We worked with the CMA to address its concerns and are pleased to reach an agreement that includes some changes, a Microsoft spokesperson said in an email.
Microsoft agreed to get in touch with inactive users to remind them how to stop paying and to provide clearer notice about future price increases. In addition, existing users with a continuous subscription in the form of an annual fee will have the opportunity to cancel their contract and receive a proportional refund.
Players need clear and timely information so they can make informed decisions after becoming an auto-renewing member or subscriber, said Michael Grenfell, executive director of the CMA’s enforcement division. He added: Other businesses offering auto-renewing memberships or subscriptions should also take note and review their actions to ensure compliance with consumer protection laws.
The CMA’s concerns over Microsoft’s actions have once again highlighted the tension between the tech giant and UK regulators. The agency has voiced concerns about Facebook’s acquisition of Giphy and recently criticized Google and Apple for exploiting market dominance to form an exclusive ecosystem.
Microsoft continued to expand its reach in the video game market last week, agreeing to buy Call of Duty developer Activision Blizzard for $69 billion in what would be the company’s largest acquisition ever.