Apple is facing a legal claim brought by the consumer group Which? that accuses the tech giant of effectively trapping 40 million British customers into its iCloud service, charging them “rip-off prices” for storage. The claim, if successful, could result in a £3 billion payout, with each affected customer potentially receiving around £70.
Which? argues that Apple’s practices are anti-competitive, claiming that the company has been overcharging UK consumers for iCloud storage over a period of nine years, beginning in 2015. Apple, however, has rejected the accusations, maintaining that iCloud is not mandatory for users. The company asserts that many users choose third-party alternatives, and it works to make data transfer between services as easy as possible.
Toby Starr from the legal firm Humphries Kerstetter pointed out that the case is part of a larger trend of class actions against major tech companies, which have been operating without sufficient constraints. Other major tech firms, including Facebook, Google, Steam, and the UK’s top mobile providers, are also facing legal claims at the same court, the Competition Appeal Tribunal.
Apple users are given a small amount of free digital storage, but are encouraged to pay for additional iCloud storage to back up photos, videos, messages, contacts, and other content. Prices for iCloud storage range from £0.99 per month for 50GB to £54.99 per month for 12TB. Apple has been criticized for not allowing rival storage services full access to its devices, citing security concerns. However, critics argue that this practice also contributes to Apple’s significant revenue.
Which? says the legal action is meant to send a strong message to corporations like Apple that they cannot exploit UK consumers without facing consequences. Anabel Hoult, chief executive of Which?, stated, “By bringing this claim, we can help consumers get the redress they are owed and create a more competitive market.”
Apple has strongly denied the allegations, with a spokesperson stating, “We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise.”
