According to Apple iCloud news, the consumer group Which?, with approximately 40 million British iCloud users has launched a legal battle against Apple, accusing the anti-competitive practices and locking consumers into its iCloud service at what it calls rip-off prices.
If successful, this lawsuit could lead to a payout of £3 billion, awarding an average of £70 to each affected customer.
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The lawsuit was by the UK consumer advocacy group Which?, accuses Apple of exploiting its control over the iOS operating system to drive customers towards its proprietary iCloud storage services.
Which? alleges that Apple encourages iOS users to rely on iCloud and also limits full access to third-party storage alternatives, effectively locking customers into iCloud for storing photos, contacts, videos and other data.
The legal claim says that Apple’s practices, particularly over the last nine years have led to a lack of competitive choice, allowing the company to set what it describes as unfair and inflated prices for iCloud services.
According to Apple iCloud news, the claim suggests a potential compensation total of £3 billion or around $3.8 billion, if the court rules in favor of consumers.
If successful each iCloud customer affected could receive approximately £70 as compensation for overcharges from what Which? describes as an iCloud monopoly.
Apple offers a minimal 5GB of free iCloud storage, but additional storage space incurs monthly fees ranging from £0.99 for 50GB to £54.99 for a 12TB storage plan.
According to Which?, Apple increased iCloud storage prices by 20% to 29% across various storage tiers in 2023. While Apple insists its customers have the freedom to use other storage options, it restricts access for third-party services.
According to Apple iCloud news, Apple has denied allegations, stating that its users are not forced to use iCloud and many customers opt for third-party services.
In response to this Apple iCloud news, a company spokesperson said that Apple works hard to make data transfer as easy as possible and insisted its iCloud pricing is competitive with other cloud storage providers.
Apple has clarified that nearly half of its user base does not subscribe to paid iCloud services, either because they don’t require extra storage or prefer alternative providers.
The lawsuit is set to be heard by the UK’s Competition Appeal Tribunal, which will decide whether Which? can act as a representative in this class-action suit.
Toby Starr from the law firm Humphries Kerstetter said that this case is part of an increasing tide of large class actions against tech corporations.
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Apple provides users with a small 5GB of free storage, which becomes insufficient for many users who store photos, documents and essential data.
To access more storage, users must pay for monthly iCloud plans ranging from £0.99 for 50GB to £54.99 for 12TB.
In 2023, Apple raised iCloud subscription fees for UK consumers by up to 29%, which some media referred to as a shock price hike. This increase affected millions of consumers already committed to iCloud plans intensifying complaints over the lack of affordable alternatives.
If successful, the class action suit could result in Apple paying out nearly £3 billion to affected customers with individual compensation averaging £70 per person.
According to Apple iCloud news, this lawsuit includes all UK consumers who have paid for iCloud storage since October 2015 with approximately 40 million eligible claimants.
In this apple iCloud news update, Which? states it is leveraging a provision in the UK’s Consumer Rights Act of 2015, which allows for opt-out collective actions on behalf of affected consumers.
Apple has denied the claims put forth by Which?. Apple says that its 6TB iCloud plan, priced at £26.99 per month, is competitive, costing less than similar plans offered by Proton, which charges £33.28 per month.
iCloud is embedded into Apple’s ecosystem integrated with iPhones, iPads and Macs. Apple promotes iCloud for storing photos, videos and files securely, enabling users to access them across devices.
Which? says that this integration strategy gives iCloud an unfair advantage, limiting users’ ability to choose other storage options effectively.
According to Apple iCloud news, If Apple does not settle, the case may proceed through a lengthy court process and the CAT will determine whether Which? can represent the estimated 40 million affected consumers.
The next stages of this lawsuit hinge on CAT’s decision, which, if favorable to Which? could influence other Big Tech cases and open doors to class-action suits in the UK and internationally.
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