Consumer group Which? has filed a legal claim against Apple, alleging that the tech giant has unfairly restricted around 40 million British users to its iCloud storage service and charged them “rip off prices” for additional storage. If successful, the claim could lead to a £3 billion payout, with individual customers receiving approximately £70.
Which? claims Apple has “locked” users into its service and overcharged them for storage, offering minimal free storage space and pushing users toward paid iCloud plans. Subscription costs range from £0.99 per month for 50GB to £54.99 per month for 12TB of space. Apple counters these claims, asserting that users are not required to use iCloud and can turn to third-party storage options. Apple also states that it prioritizes user security and aims to make data transfer accessible.
Toby Starr from Humphries Kerstetter commented that this case is part of a “growing tide” of legal actions against tech giants, including Facebook, Google, and Steam, brought before the UK’s Competition Appeal Tribunal. Starr believes that such cases, although lengthy, are likely to impact big tech as they may end in settlements.
Anabel Hoult, CEO of Which?, stated that the lawsuit serves as a message to large corporations, emphasizing that UK consumers should not be exploited. Which? seeks not only compensation for affected customers but also aims to discourage similar behavior from large tech firms in the future.
Which? has partnered with law firm Willkie Farr & Gallagher, with funding from Litigation Capital Management. Alan Davis of Pinsent Masons suggests that further similar claims could emerge, driven by the high value of potential damages and the support of litigation funders. However, he points out that without a competition law infringement decision, the burden of proving market abuse rests on the claimant.
Which? has urged Apple to settle the issue without prolonged litigation, advocating for refunds to consumers and greater market competition.