Which? launches £3 billion lawsuit against Apple over iCloud use – as 40 million Brits could receive payout

14 November 2024, 09:42

Consumer watchdog Which? has launched a £3 billion lawsuit against tech giant Apple, claiming the company breached competition law by “forcing” customers to use its iCloud service.

The suit claims Apple encouraged its users to sign up to iCloud to store photos, videos and other files while simultaneously making it difficult to choose other cloud-based products and in turn stifling competition.

If the claim is successful, up to 40 million UK customers could be owed a payout.

According to the consumer group, Apple has prevented its customers from using other cloud-based services while making users of iOS products pay to use iCloud.

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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.

“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.”

The group also alleges Apple overcharges users for iCloud subscriptions, using the lack of competition to rip customers off.

The group said it is seeking damages for all affected Apple customers who have obtained iCloud services since October 1 2015, which it estimates is around 40 million people, and that individual customers could be owed an average of £70, depending on how long they have been paying for the service.

Apple has strongly denied the claims and says it will “vigorously” defend itself.

“Apple believes in providing our customers with choices,” a spokesperson told Sky News.

“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 it’s to iCloud or another service.

“We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise.”

The Which? claim represents all Apple users who have purchased iCloud services since 2015 and those that don’t want to be included must opt-out.

If the watchdog is successful, 40 million people could receive up to £70 each.