Apple is accused of entrapping and ripping off 40 million iCloud customers

Apple is facing a legal claim accusing it of effectively locking 40 million UK customers into its iCloud service and charging “rip-off prices”.

Consumer group Which one? says the legal action – which it has initiated – could result in a £3 billion payout if successful, which equates to £70 per customer.

Apple has rejected suggestions that its practices are anti-competitive, saying users are not required to use iCloud, many rely on third-party alternatives and insisting it “works hard to make data transfers as simple as possible”.

It is yet another example of the “growing wave of major class actions against Big Tech” that have “occurred without sufficient coercion,” Toby Starr of law firm Humphries Kerstetter told the BBC.

Facebook, Googlinggaming giant Steam and that of Great Britain leading mobile providers are among others facing legal claims in the same court, the Competition Appeal Tribunal.

“While most of these claims are still in their early stages and will take a long time to resolve, there will be more decisions and settlements in the coming years – these will start to impact the tech giants’ businesses,” said he. Mr. Starr.

A price to pay

Users of Apple products get a small amount of digital storage space for free – and then are encouraged to pay to use the iCloud service to back up photos, videos, messages, contacts and any other content stored on their device is.

Prices for this storage range from £0.99 per month for 50GB of space to £54.99 per month for 12TB.

Apple does not give competing storage services full access to its products.

It says this is for safety reasons, but it also contributes to the the company’s enormous revenues.

Which one? says that over a nine-year period dating back to 2015, Apple effectively locked people into its services — and then overcharged them.

“By making this claim: Which one? shows big companies like Apple that they cannot rip off British consumers without facing repercussions,” said the body’s chief executive Anabel Hoult.

“Taking these legal steps means we can help consumers get the compensation they deserve, deter similar behavior in the future and create a better, more competitive marketplace.”

Apple has strongly denied Which’s allegations.

“We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim to the contrary,” the company said in a statement.

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‘Very high value damage’

Although launched by Which?, the legal action is being funded and pursued by international law firm Willkie Farr & Gallagher.

Which one? said they would receive compensation as the case progressed, and that they would receive additional payments if the case was successful – but they would not receive a percentage of any damages awarded.

Alan Davis, of law firm Pinsent Masons, said there would most likely be more similar cases in the future.

“It is inevitable that further claims of this nature will be brought given the very high value of the total damages and the role and incentive for litigation funders to support these claims, which might not otherwise be brought without that financial support,” he said. told the BBC.

He added that the lack of infringement decisions under EU or UK competition law meant the onus would be on the claimant to prove that the market abuse he alleged actually occurred.

However, he pointed out that the regulator is a broader research into cloud services in Great Britain.