UK Consumer Watchdog Files $3.75 Billion Lawsuit Against Apple Over iCloud Regulations

Apple Faces $3.75 Billion Lawsuit in the UK Over iCloud Service Practices

Apple Inc. has recently found itself at the center of a significant legal challenge in the UK, as the company comes under fire for alleged monopolistic practices. The scrutiny has been particularly intense due to claims that Apple is forcing users to rely on its iCloud service, thereby stifling competition in the cloud storage market.

Consumer Watchdog Takes Action

Which?, a prominent UK consumer rights organization, has accused Apple of locking over 40 million customers into its iCloud ecosystem at exorbitant prices. According to which.co.uk, the lawsuit highlights how Apple encourages users to subscribe to its cloud storage while impeding access to competitive services.

Limitations of iCloud Storage

Which? claims that customers do not have the option to store or back up their data using third-party cloud services. With iCloud’s free storage capped at a mere 5GB, users facing storage limitations are compelled to purchase additional space directly from Apple.

The Legal Proceedings

The legal action has been filed with the Competition Appeal Tribunal, seeking a staggering £3 billion (approximately $3.75 billion) in compensation for UK iCloud users who have paid for the service since October 1, 2015. Notably, following Brexit, the European Commission no longer holds jurisdiction over such cases in the UK.

Statement from Which?

As stated by Anabel Hoult, Chief Executive of Which?:

“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.”

Apple’s Response

Apple has contested the allegations, asserting that users are not mandated to use iCloud and can opt for various third-party data storage solutions. In a statement reported by Computer Weekly, a spokesperson said:

“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’s to iCloud or another service. We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise.”

Broader Context: US Scrutiny

In parallel, the U.S. Department of Justice has launched its own investigation into Apple, exploring similar claims of monopolistic behavior that restrict customer access to competing platforms.