Microsoft has announced that it will begin canceling dormant Xbox Live Gold and Game Pass subscriptions, though the consumer protection practice will only be available in the UK for now.
The company has announced this new measure as per a voluntary agreement with the UK’s Competitions and Market Authority (CMA). The CMA has been actively investigating auto-renewal subscriptions for all major gaming platforms since 2019, though neither Sony nor Nintendo has publicly committed to any changes to their services.
Microsoft will begin reaching out to those subscribed to Xbox Live Gold or Game Pass who haven’t used the service in at least one year. It will inform customers how to opt-out of future payments, and those who continue to pay but not use their subscription for another full year (24 total months) will automatically have their service canceled for them.
In addition to these changes, Microsoft has agreed to provide better information about auto-renewing subscriptions, including clearer details regarding the frequency in which services are re-upped and how to receive a refund for accidental renewals.
The CMA appears happy with Microsoft’s decision and remains hopeful that other companies will follow suit. “Other companies offering memberships and subscriptions that auto-renew should take note, and review their practices to ensure they comply with consumer protection law” Executive Director of Enforcement Michael Grenfell shared in a statement on the matter.
Microsoft’s consumer-friendly changes will apply first in the UK, but the company tells The Verge that it will begin rolling out globally at some point in the near-future.
Popular streaming service Netflix underwent similar adjustments back in 2020. With Microsoft now onboard, too, it's likely that we'll begin seeing more companies adopt this type of protection practice.