Apple faces a class action lawsuit worth around £3 billion for allegedly violating UK antitrust laws. The company allegedly monopolized the cloud storage market, forcing about 40 million Britons to overpay for iCloud services.
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Consumer advocacy not-for-profit Which? has filed a case against Apple at the Competition Appeal Tribunal, alleging the tech giant is abusing its dominant market position and restricting Britons’ choice of cloud services. According to Which?, each of the 40 million Apple users in the UK who paid for iCloud services since October 1, 2015 could expect compensation of an average of £70 if the claim is successful.
ICloud cloud storage, linked to every Apple device, provides 5 GB of free storage space. However, to increase storage capacity, the user needs to sign up for a paid subscription, which ranges from 99p to £54.99 per month. In June 2023, the cost of iCloud tariffs increased by 20–29%, which caused discontent and was described in the British media as a “shock price increase” affecting millions of users.
Which? claims Apple is breaking UK competition law by effectively locking millions of UK consumers into its cloud storage at “exorbitant” prices. The organization says iOS, Apple’s mobile operating system, has a monopoly position and the company is using this to gain an unfair advantage in the cloud storage market.
In addition, Which? notes that Apple actively encourages users to sign up for iCloud while making it difficult to use third-party cloud providers. The company doesn’t allow customers to save or back up their Apple device data using third-party services, which hurts competition and leads to higher prices for consumers.
Apple denies these accusations, saying its users are not required to use iCloud and many rely on a wide range of third-party alternatives for data storage. The company also emphasizes that it is trying to make transferring files as easy as possible, whether to iCloud or another service. Almost 50% of its customers don’t need or pay for an iCloud+ subscription.
It is worth noting that a similar lawsuit was filed against Apple in the United States in March of this year. In the UK, Which? uses the “non-opt out class action” mechanism introduced by the Consumer Rights Act 2015, which allows all affected consumers to be automatically included in a claim unless they choose to opt out.
To conduct business Which? has engaged international law firm Willkie Farr & Gallagher, and funding is provided by Litigation Capital Management. However, the organization is calling on Apple to resolve the matter without litigation by “returning consumers their money and opening up iOS so users have a choice of cloud services.”
Apple compared its prices to competitors, saying its plans are comparable to other cloud services. For example, iCloud’s 6TB monthly plan costs £26.99, while its Swiss rival’s plan costs £33.28. The company emphasizes that it “works hard to make transferring data as easy as possible—whether to iCloud or another service.”