Apple faces £3bn legal claim over iCloud charges for UK customers
Apple is facing a major legal claim in the UK, accused of locking 40 million British customers into its iCloud service and charging what consumer group Which? describes as “rip-off prices.” The case, filed by Which?, could lead to a £3 billion payout if successful, equating to around £70 per affected customer.
Which? claims Apple has effectively tied UK customers to its iCloud storage service since 2015, offering limited free storage and then charging for upgrades that range from £0.99 per month for 50GB to £54.99 per month for 12TB. They argue that by limiting the integration of third-party storage services with Apple devices, the company has restricted users’ choices and boosted its revenue from iCloud subscriptions.
Apple strongly denies the claims, asserting that iCloud is not a requirement and that users have access to various third-party storage options. “We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise,” the company stated, adding that it “works hard to make data transfer as easy as possible.”
The case is part of what legal experts describe as a “growing tide” of class actions aimed at tech giants, who critics argue have operated with insufficient oversight. Toby Starr, from the law firm Humphries Kerstetter, commented, “There will be more decisions and settlements over the coming years, which will start to impact Big Tech’s business practices.”
The Competition Appeal Tribunal, where this claim is being heard, is seeing similar cases against Facebook, Google, gaming platform Steam, and several leading UK mobile providers.
Anabel Hoult, chief executive of Which?, stated that this legal action aims to hold Apple accountable and to protect consumers: “By bringing this claim, Which? is showing big corporations like Apple that they cannot overcharge UK consumers without facing repercussions. This action will help secure redress for affected consumers, deter similar behavior, and foster a fairer, more competitive market.”
While Which? is leading the action, the international law firm Willkie Farr & Gallagher is funding and prosecuting the case, taking only fees—not a share of any damages. Alan Davis of Pinsent Masons predicts an increase in such cases due to the substantial potential damages and the role of litigation funders who make these cases financially feasible. The case also comes as UK regulators launch a wider investigation into cloud services in the country, potentially setting the stage for further scrutiny of Big Tech practices.
