Microsoft is making its Xbox subscriptions more flexible after UK regulator steps in

Illustration by Alex Castro / The Verge

Microsoft is making it easier for people to subscribe to its games. The UK's Competition and Markets Authority has secured undertakings with Microsoft that will improve accidental renewals.

If customers are reminded how to stop payments and still not use a membership, Microsoft will offer refunds to subscribers who are on recurring 12-month subscriptions.

The Xbox maker has agreed to address some of the concerns identified by the CMA.

• “Better upfront information: Microsoft will provide more transparent, upfront information to help customers understand their Xbox membership – making clear, for example, that the subscription will auto-renew unless the customer turns off auto-renewal; when the subscription will auto-renew; how much it will cost; and how the customer can receive a refund after an accidental renewal.”
• “Refunds: Microsoft will contact existing customers on recurring 12-month contracts and give them the option to end their contract and claim a pro-rata refund.”
• “Inactive memberships: Microsoft will also contact existing customers who haven’t used their memberships for a long time but are still paying. These customers will be reminded how to stop payments, and if they continue not to use their memberships, Microsoft will ultimately stop taking further payments.”
• “Better information about price increases: Microsoft will give clearer notifications of any future price rises, and will ensure people know how to turn off auto-renewal if they don’t want to pay the higher price.”

Changes to inactive subscriptions will be available in the UK and will be available globally soon, according to a Microsoft spokesman. Microsoft's changes will be followed by other companies and they should be aware of auto-renewals and not end up paying for services they no longer use.

Other companies that offer memberships and subscriptions should review their practices to make sure they comply with consumer protection law.

Microsoft's subscription services are important to the company's gaming efforts. The software giant has just announced plans to acquire the company for $68.7 billion in a move that will boost its Game Pass subscription. 25 million people subscribe to the Xbox Game Pass, which gives them access to more than 100 games that they can download to an Xbox console or stream on tablets, phones, or through a web browser with the Ultimate version of the service.