Which? launches £3 billion lawsuit against Apple over iCloud abuses

Lawsuit says around 40 million Apple customers have been locked into its iCloud service at rip-off prices.

Consumer group Which? has launched a £3 billion claim against Apple, claiming the tech giant has breached competition law by ‘forcing its iCloud services on customers.’

It says Apple encouraged users to sign up for an iCloud subscription to store photos, videos and other data and is therefore favouring its own products, while simultaneously making it difficult to use alternative products, ultimately stifling competition.

Which? chief executive Anabel Hoult said: 

‘We believe Apple customers are owed nearly £3 billion as a result of the tech giant forcing its iCloud services on customers and cutting off competition from rival services.

‘By bringing this claim, Which? is showing big corporations like Apple that they cannot rip off UK consumers without facing repercussions.’

Which? – with law firm Willkie Farr & Gallagher – has filed its claim with the Competition Appeal Tribunal. The claim is funded by Litigation Capital Management.

The next step will be for Which? to obtain permission from the Competition Appeal Tribunal to pursue the claim to trial. 

Apple accused of ‘trapping’ customers into using iCloud

Apple is accused of breaching UK competition law by giving its iCloud storage service preferential treatment, ‘trapping’ customers with Apple devices into using iCloud. 

Which? says iOS has a monopoly and is in control of Apple’s operating systems and it is incumbent on Apple not to use that dominance to gain an unfair advantage in related markets, like the cloud storage market. But it says this is exactly what has happened. 

Apple is accused of using tactics to encourage users to sign up to iCloud for storage of photos, videos and other data, while simultaneously not allowing customers to store or back-up all of their phone’s data with a third-party provider. 

It says iOS users then have to pay for the service once photos, notes, messages and other data go over the free 5GB limit. Which? claims Apple has also overcharged users for these subscriptions.

Apple customers overcharged for iCloud services

Which? says Apple customers who are ‘locked-in’ to its iCloud service over time could come at a significant cost in terms of price, quality and choice. 

It says with Apple being such a dominant player in the phone and tablet market, this behaviour also creates a barrier for any new cloud service providers looking to enter the market and prevents healthy competition. 

Apple raised the price of iCloud for UK consumers by between 20% and 29% across its storage tiers in 2023.

Which? claims the resulting lack of competition has led to consumers being overcharged each year, increasing up to £13.36 this year, through their monthly iCloud subscription fees. 

How much could Apple customers be owed?

Which? estimates that individual consumers could be owed an average of £70, depending on how long they have been paying for the services.

Hoult added: ‘Taking this legal action means we can help consumers to get the redress that they are owed, deter similar behaviour in the future, and create a better, more competitive market.’

It is seeking damages for all affected Apple customers that have obtained iCloud services since 1st October 2015. 

Which? is urging Apple to resolve this claim without the need for litigation by offering consumers their money back and opening up iOS to allow users a real choice for cloud services.

A similar case has already been commenced against Apple on this issue in the US but has yet to conclude.

Apple says it will ‘vigorously defend’ the claim

Apple rejects the claim. It says its customers are not required to use iCloud and that many either don’t need a subscription or use an alternative storage option. An Apple spokesperson said:

‘Apple believes in providing our customers with choices.

‘Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for data storage.

‘In addition, we work hard to make data transfer as easy as possible — whether its to iCloud or another service. We reject any suggestion that our iCloud practices are anticompetitive and will vigorously defend against any legal claim otherwise.’

This is the fourth major consumer claim against Apple. The first to go to trial will be Dr Rachael Kent’s £1.5 billion claim against Apple for excessive App Store prices and reduced choice. The trial begins in January 2025

The claim is the second major lawsuit from Which? who is also seeking £480 million in compensation for smartphone users in an overcharging claim against global chip manufacturer Qualcomm.