Tech giant Apple is confronting a massive legal challenge in the UK, accused of trapping and overcharging 40 million British customers through its iCloud storage service, in what could become a landmark case against Big Tech dominance.
The legal challenge
Consumer advocacy group ‘Which?’ has initiated legal proceedings that could result in a £3 billion payout—approximately £70 per affected customer. The case alleges that Apple has effectively forced users into its iCloud ecosystem while charging what ‘Which?’ describes as “rip off prices.”
Apple’s storage strategy
The tech company’s current storage pricing structure includes:
- Free tier with limited storage
- 50GB for £0.99 monthly
- Premium tiers reaching £54.99 monthly for 12TB
A key element of the legal claim centers on Apple’s practice of limiting rival storage services’ access to its products. While Apple maintains this is for security purposes, critics argue it serves to boost the company’s revenue streams.
The legal action covers nine years starting from 2015, during which ‘Which?’ claims Apple has systematically locked consumers into its services while implementing excessive pricing strategies.
Apple’s response
Apple has rejected the allegations. “We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise,” the company stated. They emphasize that users are not required to use iCloud and can opt for third-party alternatives, adding that they “work hard to make data transfer as easy as possible.”
Broader tech industry impact
Growing Trend of Legal Challenges
Legal expert Toby Starr from Humphries Kerstetter told the BBC this case represents part of a “growing tide of large class actions against Big Tech” which has “operated without sufficient constraint.”
Similar legal challenges are pending against other tech giants at the Competition Appeal Tribunal, including:
- Steam gaming platform
- Major UK mobile providers
Future implications
“Although most of these claims are in their infancy and take a long time to resolve, there will be more decisions coming out over the next couple of years and there will be settlements – these will start to affect the tech giants’ businesses,” Starr explained.
Legal perspectives
The case is being funded and pursued by international law firm Willkie Farr & Gallagher, with Which? maintaining oversight. The firm will receive fees as the case progresses, with additional compensation contingent on success, though not as a percentage of damages.
Looking ahead
The case coincides with a broader regulatory investigation into cloud services in the UK, potentially signaling increased scrutiny of tech companies’ market practices. ‘Which?’ CEO Anabel Hoult emphasized the action’s broader implications: “By bringing this claim, Which? is showing big corporations like Apple that they cannot rip off UK consumers without facing repercussions.”