U.K. consumer rights organization 'Which?' has launched a significant legal claim against Apple under competition law, representing approximately 40 million iCloud users. The lawsuit seeks £3 billion in damages, equating to around $3.8 billion, and accuses Apple of breaching competition regulations. Which? contends that Apple leverages its dominant position with iOS to give preferential treatment to its cloud storage service, iCloud, thus locking consumers into high-priced subscriptions. The organization claims that Apple's actions limit consumer choice by discouraging the use of alternative cloud storage service providers. These practices, Which? argues, force users to pay more once their stored data exceeds the free 5GB limit allotted by Apple, resulting in unfair pricing for U.K. consumers.
According to Which?, Apple increased iCloud subscription prices for U.K. users by 20% to 29% across its various storage levels in 2023, exacerbating the issue. The lawsuit aims to compensate affected individuals, estimating that consumers could receive an average of £70, depending on their payment history for iCloud services. A similar lawsuit is ongoing in the United States, further intensifying Apple's legal challenges. In the U.K., the claim is brought on an opt-out basis, automatically including eligible U.K.-based consumers unless they choose to withdraw. Conversely, those residing outside the U.K. must opt-in to participate.
Eligibility for claimants includes anyone who has used iCloud services, whether paid or free, since the Consumer Rights Act's enactment on October 1, 2015. Which? has partnered with Litigation Capital Management (LCM), a prominent litigation funder committed to navigating this case through to its resolution. The group is pressing Apple to resolve the claim amicably by offering refunds and modifying iOS to provide users with genuine choices for cloud storage services. Anabel Hoult, Chief Executive at Which?, stated that the claim serves as a warning to major companies like Apple against taking advantage of U.K. consumers without consequences.
She highlighted that this legal action is a step toward securing due compensation for consumers, deterring such behavior in the future, and fostering a more competitive market environment. If Apple does not settle the claim outside of court, the litigation's next phase depends on whether the Competition Appeal Tribunal (CAT) authorizes Which? to represent consumers as a class representative for the lawsuit to advance collectively. Recently, there has been a rise in class-action competition lawsuits against major tech companies, driven by antitrust actions across the Atlantic, indicating a challenging regulatory climate for tech giants. In the U.K., Apple has also faced a class-action suit on behalf of developers relating to App Store fees and additional legal action alleging price collusion with Amazon.
