Are UK Apple customers being overcharged for iCloud? £3 billion lawsuit says ‘yes’

Consumer advocacy group Which one? has filed a £3 billion lawsuit against Apple, claiming the tech giant breached UK competition law by “forcing its iCloud services on customers”. According to Which one?Apple has made it difficult for iPhone and iPad users to choose alternative data storage options, effectively pushing them toward iCloud while stifling competition. The group claims that Apple’s tactics have led to customers overpaying for iCloud storage, limiting choice for users restricting the market for competing services.

Which one? Claims that Apple violated competition law

Which one?known for its role in defending consumer rights, accuses Apple of abusing its position in the market to ‘lock’ customers from using iCloud. The consumer group says iOS users don’t have an easy way to store all their data with third-party providers and are often forced to pay for additional iCloud storage once they exceed the free 5GB limit. According to Which one?Apple’s behavior has limited competition by favoring its own products over viable alternatives.

The lawsuit seeks damages for all affected Apple customers who have used iCloud services since October 1, 2015. It is estimated that approximately 40 million people are eligible for compensation, where Which one? based on their subscription history, an average payout of £70 per person is estimated. Which one? has also urged Apple to settle the claim out of court, calling for refunds for consumers and more freedom for users to select alternative cloud storage providers.

Apple defends its iCloud practices

Apple has denied allegations of anti-competitive practices and claims iCloud is an optional service. According to Apple, about half of its customers don’t use or pay for an iCloud+ subscription, which the company says supports its claim that users have a choice. In a statement, Apple said: “We believe in offering our customers choices. Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for data storage.”

Apple also defended its pricing, describing it as competitive with other cloud storage providers. The company emphasized that it is working to make data transfers easy, whether through iCloud or an alternative service. “We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim to the contrary,” Apple said in response to the allegations.

Legal action could lead to changes in the iOS ecosystem

According to Professor Pinar Akmana competition law expert from the University of Leeds, Which one?Apple’s legal action could force Apple to reconsider its data storage policies if the court rules in the consumer group’s favor. Akman explained that if Apple is found to have violated competition law, the court could require changes to iOS to support alternative data storage options. “Class actions, in which a class representative seeks damages on behalf of very large numbers of consumers, have become commonplace in Britain in recent years,” Akman said, highlighting the legal trend toward holding large companies liable for anti-competitive practices.

Akman also noted that the case revolves around Apple’s possible abuse of a dominant position. If Which one? can demonstrate that Apple’s practices have resulted in excessive costs for British consumers, then the Competition Appeal Tribunal could award damages. Akman added: “The remedies can be broad and normally require the company in question to end any violation found by the court.”

The potential success of Which one?Apple’s lawsuit could open the door for more flexibility in Apple’s iOS system, giving customers the freedom to choose from a wider range of cloud storage providers. Which one? believes that Apple’s dominance in the mobile device market has allowed the company to limit options for customers, leading to higher prices and reduced competition. Anabel Hoult, CEO of Which one?explained: “By filing this claim, Which one? shows big companies like Apple that they can’t rip off British consumers without facing repercussions.”