British consumer rights group Which? has filed a legal claim against Apple under competition law on behalf of the approximately 40 million users of the company's cloud storage service, iCloud.
The class action lawsuit, which seeks compensatory damages of 3 billion pounds (approximately $3.8 billion at current exchange rates), alleges that Apple gave preferential treatment to its cloud storage service, effectively locking people into paying for iCloud. It alleges that the company violated competition rules by doing so. Rip-off price.
“iOS is proprietary and in control of Apple's operating system, and it is Apple's obligation not to use that dominance to gain an unfair advantage in related markets, such as the cloud storage market. That is exactly what happened,” said a press release announcing the filing of the complaint with the UK Competition Appeal Tribunal (CAT).
The lawsuit alleges that Apple encourages users of its devices to sign up for iCloud for photo storage and other data storage needs, while at the same time not allowing users to save or back up all their data. The company accuses the company of making it difficult for customers to use alternative storage providers. We provide your mobile phone data to third party providers.
“If photos, notes, messages, and other data exceed the free 5GB limit, iOS users will have to pay for the service,” the paper said.
The lawsuit also accuses Apple of overcharging British consumers for iCloud subscriptions, citing a lack of competition. “Apple has increased iCloud prices for UK consumers by 20% to 29% across its storage tiers in 2023,” the paper wrote, seeking damages from all affected Apple customers. estimates that on average a private consumer could pay £. 70 (approximately $90) depending on how long you are paying Apple for iCloud services.
A similar lawsuit alleging that Apple illegally monopolizes the cloud storage market was filed in the United States in March and remains pending after the company failed to dismiss the lawsuit.
UK-based consumer has opted in
The UK claims are being brought on an opt-out basis for eligible UK-based consumers. Consumers who reside outside the UK and consider themselves eligible to participate must actively opt-in to participate in this action.
Spokesman Tommy Hundley said eligible Apple customers will be eligible to receive “all customers who have 'acquired' iCloud services, including free users, in the nine years since the Consumer Rights Act went into effect on October 1, 2015.” This includes people.''
Mr Hundley also admitted that the £3bn fee included potential opt-outs, duplication and mortality.
Although the firm is not-for-profit, the lawsuit is being funded by Ligation Capital Management (LCM), a global litigation funding firm, which says it is committed to seeing the case through to completion.
At the same time, it calls on Apple to resolve this lawsuit without the need for litigation by providing refunds to consumers and opening up iOS to allow users “real choice” of cloud services. There is.
Wych Chief Executive Officer Annabelle Holt said in a statement: It shows big companies like Apple that they can't fool British consumers without repercussions. Taking this legal action means consumers can obtain the relief they are owed, deter similar behavior in the future, and create a better, more competitive market. ”
Assuming Apple does not seek a settlement, the next step in the case will depend on whether the CAT grants Which permission to act as a class representative of consumers and proceed with claims on a class basis.
In response to a continuing wave of antitrust enforcement on both sides of the Atlantic, class-action style competition litigation against Big Tech has increased in recent years, and the issue remains in terms of full outcome and business impact. There is.
In the UK, Apple is also the subject of a class-action antitrust lawsuit filed last year on behalf of developers related to App Store fees.
Last year, another lawsuit was filed in the UK against Apple and Amazon alleging price fixing.