Apple Faces £3bn UK Lawsuit Over Alleged Cloud Storage Monopoly
Consumers Rights Group Claims Unfair Pricing Traps Millions
Apple Inc. is confronting a class action lawsuit in the UK claimed by consumer advocacy group Which?
over allegations of monopolistic practices with its iCloud storage service.
The lawsuit, filed with the UK’s Competition Appeal Tribunal, accuses Apple of breaching competition law by effectively forcing its UK customers to use iCloud at inflated prices.
Approximately 40 million UK Apple users who have purchased iCloud services since 2015 may be entitled to a payout averaging £70 if the claim is successful.
Which?
argues that Apple’s iOS operating system unfairly favors iCloud by restricting the integration of third-party backup options for complete data storage.
This, they assert, has reduced competition and led to significant overcharging, particularly highlighted by iCloud’s price hike of 20% to 29% in June 2023.
The lawsuit is being pursued under the 'opt-out collective actions' regime of the Consumer Rights Act 2015, which enables representation for large affected groups unless individuals opt out.
The legal proceedings are facilitated by Willkie Farr & Gallagher with financial backing from Litigation Capital Management.
Apple refutes these claims, asserting that its users opt for alternative third-party storage options and highlighting that nearly half do not subscribe to iCloud+.
Apple maintains that its pricing aligns with competitors and stands prepared to contest the legal challenge.
Meanwhile, Which?
insists on a resolution that includes refunds for consumers and a more open iOS environment accommodating competitive cloud services.
over allegations of monopolistic practices with its iCloud storage service.
The lawsuit, filed with the UK’s Competition Appeal Tribunal, accuses Apple of breaching competition law by effectively forcing its UK customers to use iCloud at inflated prices.
Approximately 40 million UK Apple users who have purchased iCloud services since 2015 may be entitled to a payout averaging £70 if the claim is successful.
Which?
argues that Apple’s iOS operating system unfairly favors iCloud by restricting the integration of third-party backup options for complete data storage.
This, they assert, has reduced competition and led to significant overcharging, particularly highlighted by iCloud’s price hike of 20% to 29% in June 2023.
The lawsuit is being pursued under the 'opt-out collective actions' regime of the Consumer Rights Act 2015, which enables representation for large affected groups unless individuals opt out.
The legal proceedings are facilitated by Willkie Farr & Gallagher with financial backing from Litigation Capital Management.
Apple refutes these claims, asserting that its users opt for alternative third-party storage options and highlighting that nearly half do not subscribe to iCloud+.
Apple maintains that its pricing aligns with competitors and stands prepared to contest the legal challenge.
Meanwhile, Which?
insists on a resolution that includes refunds for consumers and a more open iOS environment accommodating competitive cloud services.
