The British consumer organization Which? has filed a lawsuit against the technology company Apple. Which? argues that Apple has favored its own cloud service, iCloud, at the expense of consumers, and is now seeking £3 billion in damages.
In the lawsuit, Which? claims that Apple is using its dominance in the iOS operating system to steer consumers to iCloud, thereby raising prices for cloud storage, TechCrunch reports.
The group accuses Apple of locking in iOS users by limiting data storage options, including imposing what it says are extortionate prices on customers for extra storage space.
According to Which? Apple has prevented consumers from fully using other storage providers on their devices, and raised iCloud prices for UK users by up to 29% in 2023.
“iOS has a monopoly and is in control of Apple’s operating systems and it is incumbent on Apple not to use that dominance to gain an unfair advantage in related markets, like the cloud storage market. But that is exactly what has happened”, writes Which? in a press release.
Apple denies the accusation
Apple has responded by denying all allegations, and company spokesman Tom Parker has issued a statement:
– Apple believes in providing our customers with choices. Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for data storage. In addition, we work hard to make data transfer as easy as possible – whether it is to iCloud or another service. We deny any suggestion that our iCloud practices are anti-competitive, and we will vigorously defend against the legal claims.
The UK lawsuit covers all UK consumers who have used iCloud since October 2015, when the Consumer Rights Act came into force.
The financial risk for Which? is covered by Litigation Capital Management, which according to Which? has committed to pursue the case to its conclusion.
Consumer rights group Which? is suing Apple for £3bn over the way it deploys the iCloud.
If the lawsuit succeeds, around 40 million Apple customers in the UK could be entitled to a payout.
Sky’s @MickeyCarroll0 has the full story ⬇️https://t.co/PAiZ4D1jU3
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— Sky News (@SkyNews) November 14, 2024
Apple subject to multiple lawsuits
Which? hopes that Apple will opt for a settlement, which would give consumers the right to compensation and open the door to more competition in cloud computing. The organization’s executive director, Anabel Hoult:
– By bringing this claim, Which? is showing big corporations like Apple that they cannot rip off UK consumers without facing repercussions. Taking this legal action means we can help consumers to get the redress that they are owed, deter similar behavior in the future and create a better, more competitive market.
It is worth noting that the number of similar competition cases against Big Tech has increased in recent years.
In the UK, Apple has been the subject of an antitrust lawsuit in the form of a class action last year on behalf of software developers in connection with charges in the App Store. In the same year, a separate lawsuit was also filed against Apple and Amazon in the UK with allegations of price collusion.
