The UK-based consumer advocacy group Which? is suing Apple, claiming that the tech giant has essentially forced 40 million British users to pay outrageous fees for its iCloud service. If the Apple iCloud lawsuit is successful, it may lead to £3bn payment. This will further lead to individual customers possibly receiving 70£ in compensation.
Which? contends that Apple’s iCloud policies are anti-competitive, restricting consumer options and raising prices. However, Apple has rejected the allegations, stating that using iCloud is optional and that customers can access various third-party apps.
The company claims its policies aim to make data transfer as seamless as possible while maintaining high security standards. According to Toby Starr from the legal firm Humphries Kerstetter, this action is part of an increasing number of legal challenges against large tech companies for alleged unfair business practices.
The UK’s Competition Appeal Tribunal has already heard similar cases against tech giants like Google, Facebook, and gaming platform Steam. While such cases are typically complex and can take multiple years to resolve, Starr noted that they could significantly impact how tech companies operate.
As settlements and rulings emerge, they may change how the tech industry handles consumer rights and competition. Currently, Apple offers its users a small amount of free storage and encourages them to buy iCloud plans. Subscription cost ranges from £0.99 a month for 50GB of space to £54.99 for 12TB. Claiming securing concerns, Apple restricts alternative cloud storage providers’ ability to interact with its products fully. Which? Argues that this approach, which has been in place since 2015, unfairly increases Apple’s revenue.
Which? CEO Anabel Hoult stated that the legal action aims to ensure Apple is held accountable for its behavior, improve market competition, and protect consumer rights. This case is being pursued by Willkie Farr & Gallagher with financial backing from Litigation Capital Management. Because of the large scale of the damages and the availability of funding, Alan Davis from Pinsent Masons expects to see various other cases like the Apple iCloud lawsuit. The UK regulator is already looking into the cloud service market so that these legal issues may impact the industry.
