Microsoft Complies With CMA For Xbox Online Subscription Renewal Requirements

Xbox Online subscriptions do not automatically continue one year later. (photo; doc unsplash)

JAKARTA - Microsoft will start offering customers more information on how to automatically renew Xbox online game subscriptions in the UK. This was revealed by the competition supervisor in the UK on Wednesday, January 26, after the issue of a monopoly was raised by Xbox.

The Competition and Markets Authority (CMA) secured efforts from US tech giant Microsoft to notify customers in advance of auto-renewal for Xbox Live Gold and Game Pass subscriptions that start at £7 per month.

Clearer information will help gamers avoid being charged for services they have discontinued, the CMA said.

"We have worked closely with CMA to address its concerns and are pleased to have reached an agreement that includes several changes," a Microsoft spokesperson said by email.

Microsoft has also agreed to contact inactive customers to remind them how to stop payments and provide clearer notice of future price increases.

Additionally, existing customers with recurring one-year subscriptions will be given the option to terminate their contract and claim a refund on a pro-rated basis.

"Gamers need to be provided with clear and timely information to make the right choices when signing up for membership and subscription auto-renewal," said Michael Grenfell, Executive Director of Enforcement at CMA, in a statement to the media.

"Other companies that offer memberships and auto-renewing subscriptions should take note, and review their practices to ensure they comply with consumer protection laws," Grenfell said.

CMA's concerns around Microsoft's practices point to its latest clash with Big Tech. Watchdogs have warned Facebook over their acquisition of Giphy, and have recently criticized Google and Apple. CMA says that the two companies are using their market power to create a largely self-sufficient ecosystem.

Microsoft last week deepened its footprint in the videogame industry, agreeing to buy "Call of Duty" maker Activision Blizzard for $69 billion in the game's biggest-ever acquisition.