Consumer group Which? has launched a legal claim against Apple, alleging the company is effectively locking 40 million British customers into its iCloud service and charging “rip-off prices”. The potential legal action could result in a £3 billion payout, with an average customer receiving around £70.
The lawsuit centers on Apple’s cloud storage service, which provides users with a small amount of free digital storage. After that, customers are encouraged to pay for additional iCloud storage to back up photos, videos, messages, and other device content. Pricing ranges from £0.99 per month for 50GB to £54.99 per month for 12TB.
Which? claims that over a nine-year period dating back to 2015, Apple has been systematically locking users into its services and overcharging them. A key point of contention is that Apple does not allow rival storage services full access to its products, which the company claims is for security reasons. However, this practice also contributes significantly to Apple’s service revenue.
Apple has strongly rejected the accusations, stating that users are not required to use iCloud and that many customers utilize third-party alternatives. The company insists it “works hard to make data transfer as easy as possible” and will “vigorously defend against any legal claim” suggesting anti-competitive practices.
The legal action is part of a broader trend of class-action lawsuits against big tech companies. Other tech giants like Facebook, Google, and Steam are facing similar legal challenges at the Competition Appeal Tribunal. Toby Starr from legal firm Humphries Kerstetter suggests these actions represent a “growing tide” against tech companies that have “operated without sufficient constraint”.
Which? has engaged international law firm Willkie Farr & Gallagher to pursue the case, with funding from Litigation Capital Management. The law firm will be paid fees as the case progresses, with additional payments contingent on success.
Legal expert Alan Davis from Pinsent Masons believes more similar cases are likely in the future, driven by the potential for high-value damages and the involvement of litigation funders. He noted that the claimant would need to prove market abuse, especially given the absence of previous infringement decisions.
The consumer group has urged Apple to resolve the matter without litigation, requesting that the company offer consumers refunds and open up competition. Meanwhile, the UK’s Competition and Markets Authority (CMA) has announced a broader investigation into cloud services.
Legal actions against tech companies typically take years to resolve, and this case is expected to follow a similar lengthy process. Which? CEO Anabel Hoult emphasized that the legal action aims to help consumers get rightful compensation, deter similar behavior, and create a more competitive market.
