Apple (AAPL, Financial) is facing a £2.9 billion legal case in the UK over allegations of anti-competitive behavior in the cloud storage industry. Consumer group Which? claims the tech giant effectively locked millions of UK users into its iCloud service at inflated prices, with around 40 million customers potentially eligible for compensation.
The case, filed with the UK Competition Appeal Tribunal, accuses Apple of leveraging its dominance in the mobile operating system market to favor iCloud while restricting users from easily using third-party data storage providers. Which? Argues that Apple's 20-29% price hike in June 2023 took advantage of consumers who had few viable alternatives to iCloud.
Apple has rejected these claims, asserting that iCloud is an opt-in service and that only 44% of its customers use the paid iCloud+ tier. The company also defends its pricing, stating that it is in line with competitors like Proton. In addition, Apple argues that it facilitates easy data transfer to third-party providers, countering accusations of unfair market practices.
This lawsuit adds to a broader wave of scrutiny over Apple's business practices, with a similar case filed in the United States earlier this year. If successful, the case could result in compensation of around £70 per customer, raising important questions about market fairness and consumer protection amid the rapid growth of cloud storage services.
