UK Consumer Group Launches $3.8 Billion Lawsuit Against Apple Over iCloud Storage

Which?, a UK consumer group, has announced the launch of a £3 billion lawsuit against Apple for 'trapping' users into using iCloud storage. The claim seeks damages for around 40 million customers in the UK who have obtained iCloud services over the last nine years.

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The consumer champion's action, filed with the Competition Appeal Tribunal, claims Apple has breached UK competition law by giving its iCloud storage service preferential treatment, "trapping" customers with Apple devices into using iCloud.

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.


A key tactic to achieve this has been encouraging users to sign up to iCloud for storage of photos, videos and other data while simultaneously making it difficult to use alternative providers, including because Apple does not allow customers to store or back-up all of their phone's data with a third-party provider. iOS users then have to pay for the service once photos, notes, messages and other data go over the free 5GB limit.
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The consumer group also accuses Apple of creating barriers to entry for any new cloud service providers looking to compete and overcharging customers with frequent price hikes.

Which? estimates that individual customers are owed an average of £70, depending on how long they have been paying for the services since October 1st 2015.

Anabel Hoult, Which? Chief Executive, said:


"We believe Apple customers are owed nearly £3 billion as a result of the tech giant forcing its iCloud services on customers and cutting off competition from rival services.

"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 behaviour in the future and create a better, more competitive market."

Apple has since responded saying, "We reject any suggestion that our iCloud practices are anticompetitive and will vigorously defend against any legal claim otherwise."

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