Consumer rights group Which? is taking a bold step, launching a £3 billion lawsuit against Apple. They claim that millions of UK customers are trapped in Apple’s iCloud storage system by unfair pricing.
Which? has teamed up with Willkie Farr & Gallagher (UK) LLP to handle the legal process. They aim to secure compensation for approximately 40 million UK iCloud users, alleging that since October 1, 2015, Apple’s pricing strategy has been a “rip-off.” The group argues that Apple is violating competition laws by promoting its own cloud services on iOS devices while not addressing technical issues that prevent users from switching to other providers.
For this lawsuit to move forward, Which? needs the green light from the Competition Appeal Tribunal to represent those affected. Which? expressed that this action is necessary to hold companies like Apple accountable for using their market power to limit consumer choice and inflate prices.
Apple’s dominance over iOS has reportedly led to restrictions. For instance, users can’t back up their data with third-party services and must pay for extra storage beyond the free 5GB limit. Which? argues that these practices have led to consumers being overcharged, with iCloud prices rising between 20% and 29% in 2023. They estimate that each affected user could see about £70 in compensation, encouraging Apple to resolve this without going to court.
Anabel Hoult, the CEO of Which?, emphasized that this legal action is about more than just reclaiming money. “We aim to show big companies like Apple they can’t take advantage of UK consumers without facing consequences,” she stated. She believes this lawsuit could lead to better accountability and a more competitive market.
In response, an Apple spokesperson rejected the claims, insisting customers aren’t forced to use iCloud. They highlighted that users often choose from various third-party options for data storage and asserted their commitment to facilitating data transfers between services. Apple plans to vigorously defend against these accusations.
This lawsuit arrives at a time when other tech giants, like Microsoft and Amazon Web Services, are also under scrutiny for anti-competitive behavior in various countries. The UK’s Competition and Markets Authority (CMA) is preparing to release its initial findings regarding the cloud infrastructure market.
Katherine Kirrage, a partner at law firm Osborne Clarke, noted the timing of the lawsuit against Apple is significant as the CMA is set to gain enhanced regulatory powers next year. She highlighted that companies are increasingly using competition law complaints as a strategy to promote fair practices, making litigation a growing aspect of the regulatory environment, especially in digital markets.