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AppleBusinessiPhoneTech

$3.75 billion UK lawsuit claims Apple locked users into iCloud

UK consumer group Which? sues Apple for $3.75 billion, claiming iCloud storage policies harmed users by limiting access to alternatives.

By
Shubham Sawarkar
Shubham Sawarkar's avatar
ByShubham Sawarkar
Editor-in-Chief
Shubham Sawarkar is a technology journalist at GadgetBond, covering Apple, AI, consumer technology, software, gadgets, and product launches. His work explores emerging technologies, industry developments, product...
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- Editor-in-Chief
Nov 14, 2024, 12:33 PM EST
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The image features a stylized depiction of a large wave made up of various shades of blue and white lines, swirling around and partially obscuring a pink Apple company logo with a bite taken out of it. The background is a light beige color. The wave appears dynamic and energetic, creating a sense of motion around the Apple logo.
Illustration by Michael Steeber
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Apple is facing another major antitrust battle in the UK, as consumer group Which? has launched a £3 billion (around $3.75 billion) lawsuit alleging that Apple abused its dominant position by steering iPhone users towards its iCloud service for storage, thereby limiting competition and allegedly leading to higher prices. This collective lawsuit represents over 40 million iPhone users in the UK who were allegedly pressured to pay for more iCloud storage, as the 5GB free storage cap often falls short of users’ needs.

According to Which?, Apple’s integration of iCloud into the iPhone’s operating system favors its own cloud service over competitors, a tactic that the group claims limits consumer choice and forces users into paying for iCloud subscriptions as they exhaust their free storage. In response, Apple has denied these claims, stating that iCloud use is optional and noting that users are free to choose from a variety of third-party storage services. However, Which? argues that users are “locked in” due to Apple’s tightly controlled ecosystem, which requires its own software for automatic backups and secure storage.

This case adds to Apple’s ongoing legal challenges globally, especially in Europe and the U.S., where regulators are scrutinizing Apple’s practices in the cloud storage and app markets. Recently, the European Commission accused Apple of stifling competition in the music streaming market by imposing restrictive in-app payment rules on services like Spotify, and Apple’s App Store fees are also under scrutiny in the U.S. The UK’s Competition Appeal Tribunal allowed another lawsuit against Apple to proceed, involving app overcharges on the App Store, where it’s alleged that Apple’s 30% cut on in-app purchases has led to higher prices for consumers.

This UK iCloud lawsuit aims to secure compensation for affected consumers while also challenging Apple’s wider business model, which critics argue could stifle innovation by excluding rival services. If successful, the lawsuit could push for more open competition within Apple’s ecosystem and possibly reduce the costs of cloud storage for users.

This case reflects a larger shift in Europe and the UK towards stricter regulation of Big Tech, highlighting efforts to curb monopolistic practices and promote consumer choice and fair pricing. The outcome of this lawsuit, along with others against Apple and other tech giants, will be closely watched, as it could set a precedent for consumer rights in digital markets worldwide.


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