The Italian antitrust authority, AGCM, has launched an investigation into Microsoft 365 for allegedly guiding users toward pricier subscription tiers by integrating AI tools like Copilot and Designer without explicit user consent. Microsoft has stated it will cooperate with the investigation. Last year, Australia’s consumer watchdog made a similar complaint regarding hidden costs related to Copilot during contract renewals. Despite this scrutiny, Microsoft shares rose to €327.90, a 5.71% increase, following a shift in investor sentiment towards AI-software firms. Microsoft also extended its Extended Security Updates (ESU) program for Windows 10 until October 2027, allowing users to delay transitioning to Windows 11, which could hinder hardware sales. The stock remains down nearly 19% year-to-date and is trading below key moving averages. The ongoing regulatory investigation and sluggish Windows upgrade cycle present challenges for Microsoft’s growth.