Apple Faces £3 Billion Legal Action Over Alleged iCloud Overcharging

Posted on November 16, 2024 by News Desk

Apple Faces £3 Billion Legal Action Over Alleged iCloud Overcharging

Apple, the tech giant known for its innovative products, is under fire in the UK as consumer rights group Which? files a landmark legal claim alleging unfair practices surrounding its iCloud service. The case, which could lead to a potential £3 billion payout, accuses Apple of effectively “locking in” 40 million British customers to iCloud and charging what they term “rip-off prices” for storage upgrades.

If successful, the claim could see affected Apple users receive around £70 each in compensation, marking a significant move against major tech companies operating without adequate checks.


What Is the Legal Claim About?

Which?, a prominent UK consumer group, has taken Apple to the Competition Appeal Tribunal, claiming that since 2015, the company has unfairly locked users into its ecosystem and overcharged for cloud storage. While Apple provides a limited amount of free iCloud storage (5GB), most users are prompted to upgrade to paid plans to store photos, videos, and essential data.

The pricing for iCloud storage ranges from £0.99 per month for 50GB to a hefty £54.99 per month for 12TB. According to Which?, Apple’s restrictive practices have made it difficult for users to switch to alternative services, forcing many to stay within its ecosystem.


Apple’s Response

Apple has denied the allegations, maintaining that users are free to choose third-party storage solutions and that its policies prioritize user security. The company stated:
“We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise.”

Apple also pointed out that many users successfully opt for third-party services, and it continues to improve data transfer tools to make switching easier.


Part of a Larger Trend

This lawsuit is part of a growing wave of class actions targeting tech giants like Facebook, Google, and Steam for alleged anti-competitive practices. According to Toby Starr from the legal firm Humphries Kerstetter, these cases signal a shift toward holding major corporations accountable:
“Big tech has operated without adequate restraint for years. These legal actions are just the beginning, and we can expect more decisions and settlements to impact their operations in the future.”


What Does This Mean for Consumers?

If successful, the case could set a precedent, encouraging more legal scrutiny of tech giants’ pricing and practices. Anabel Hoult, CEO of Which?, emphasized:
“By bringing this claim, we aim to help consumers receive fair redress, discourage similar conduct, and foster a more competitive market.”

For Apple users, this case serves as a reminder of the ongoing battle for transparency and fairness in the tech world.

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