Apple Faces £3 Billion Legal Claim Over Alleged iCloud “Rip-Off” Pricing
Apple is under fire in the UK as consumer advocacy group Which? initiates a £3 billion legal claim, alleging that the tech giant has effectively locked 40 million British users into its iCloud service while charging them excessive prices. If successful, the lawsuit could award affected consumers approximately £70 each.
Which? argues that since 2015, Apple has restricted customers’ options for data storage on their devices, thus compelling them to pay for iCloud services after reaching the limit of free storage. Apple’s iCloud plans currently range from £0.99 per month for 50GB to £54.99 for 12TB, and alternative storage services are reportedly restricted for security reasons, a practice that Which? claims limits consumer choice.
Apple, however, has strongly denied the allegations, stating that its iCloud practices are not anti-competitive. “Users are not required to use iCloud,” Apple commented, highlighting that many customers opt for third-party storage alternatives and asserting that it “works hard to make data transfer as easy as possible.”
The case forms part of a growing trend of high-profile legal actions targeting major tech companies at the UK’s Competition Appeal Tribunal. Similar claims have been filed against firms like Facebook, Google, and mobile providers, as scrutiny of big tech’s business practices intensifies.
Toby Starr of Humphries Kerstetter, the law firm representing Which?, noted the significance of this case as part of an “increasing wave” of legal challenges against large technology companies. Starr suggested these claims, while lengthy to resolve, may ultimately lead to significant settlements that impact the broader tech industry.
Which? has emphasized the potential consumer impact of the case, with CEO Anabel Hoult stating, “By bringing this claim, Which? is showing big corporations like Apple that they cannot rip off UK consumers without facing repercussions.” The organization believes the lawsuit could deter anti-competitive behaviour in the future, promoting a more open market for consumers.
The claim is backed by Litigation Capital Management, which will provide financial support for the proceedings, along with law firm Willkie Farr & Gallagher. While litigation funding firms expect remuneration if the case succeeds, they do not stand to receive a percentage of the damages awarded to consumers.
Legal experts predict that such cases will become increasingly common as third-party funders recognize the value of supporting claims against major corporations. Alan Davis of Pinsent Masons pointed out that without prior rulings of regulatory violations, the burden of proof rests heavily on claimants like Which?. However, the UK’s regulator recently announced a broader investigation into cloud services, signaling a potential shift in regulatory focus on the industry.
As the legal battle unfolds, Which? has urged Apple to consider a resolution outside of court, calling on the tech giant to compensate consumers and open up its platform to greater competition. For now, Apple has vowed to defend its position vigorously.
