Apple is facing a class action lawsuit worth approximately £3bn for allegedly violating UK antitrust laws. Consumer rights group Which? has brought the case to the Competition Appeal Tribunal, claiming the tech giant has abused its dominant market position in the cloud storage sector. According to Which?, Apple has forced around 40 million Britons to overpay for iCloud services, potentially entitling them to an average of £70 each in compensation if the claim is successful.
Allegations of Market Abuse
The claim centers on iCloud, a service integrated into every Apple device, offering users 5GB of free storage. To access additional space, users must subscribe to plans ranging from 99p to £54.99 per month. Notably, prices for iCloud plans rose by 20-29% in June 2023, sparking widespread backlash and being labeled a “shock price increase” in British media.
Which? alleges Apple has effectively “locked in” millions of UK consumers to its service at what it calls “sky-high” prices, citing that Apple’s mobile operating system, iOS, holds a monopoly position. The group argues that Apple’s practices stifle competition, making it difficult for users to back up their data with third-party providers.
Apple denies these claims, stating that customers are free to use other storage options and that almost half of its users do not pay for iCloud+. The company also emphasizes its efforts to ensure seamless file transfers to iCloud or competing services, asserting that its prices are competitive compared to other cloud providers.
Legal Developments and Next Steps
A similar lawsuit was filed against Apple in the US earlier this year, reminds NIX Solutions. In the UK, Which? is using the “class actions without an opt-out” mechanism under the Consumer Rights Act 2015, automatically including affected consumers unless they opt out.
Which? has partnered with international law firm Willkie Farr & Gallagher and secured funding from Litigation Capital Management. The group is urging Apple to settle the dispute by reimbursing consumers and opening iOS to third-party cloud services.
Apple, in response, has compared its pricing to competitors, highlighting that its 6TB plan at £26.99 is cheaper than a similar offering from a Swiss competitor priced at £33.28. While Apple insists its practices are fair, we’ll keep you updated as more developments emerge in this landmark case.