Apple Faces £3 Billion Lawsuit in UK Over iCloud Monopoly Allegations

Apple is facing a £3 billion (roughly $3.75 billion) lawsuit from UK consumer group Which?, which alleges that the tech giant abused its dominant position to force customers into using its iCloud storage service. The watchdog claims that Apple’s actions violated UK competition laws by limiting consumers’ options and driving up costs for iCloud subscriptions, according to The Verge.

In its statement, Which? contends that Apple has given iCloud unfair advantages, presenting it as the primary option for users to store photos, videos, and other personal data while making it challenging to use competing services. “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,” Which? stated in its announcement. The group claims Apple’s restrictions have effectively “locked in” approximately 40 million Apple users in the UK since October 2015, who now face limited alternatives for backing up their data.

The complaint highlights how Apple’s approach to data backup reinforces iCloud’s role as the primary storage solution. By restricting data backup to its own iCloud system and the option to transfer files manually to a computer, Apple limits customers’ ability to rely on third-party cloud providers. Apple’s current offer provides only 5GB of free iCloud storage—a limit unchanged since iCloud launched in 2011. Users must pay monthly fees, starting at 99p (or $0.99 in the US), if they need additional storage, according to The Verge.

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Which? argues that Apple’s dominance in the mobile operating system market carries a responsibility to uphold fair practices. “iOS has a monopoly and is in control of Apple’s operating systems,” Which? claims. “It is incumbent on Apple not to use that dominance to gain an unfair advantage in related markets, like the cloud storage market. But that is exactly what has happened.” Which? adds that through legal action, it aims to secure compensation for affected consumers, deter future anti-competitive behavior, and encourage a more competitive market for cloud services.

Apple, however, disputes the accusations, asserting that iCloud is not a requirement for its users and that many rely on alternative storage solutions. In a statement to Forbes, Apple responded, “Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for data storage. We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise.”

This legal move in the UK is part of a broader pattern of scrutiny Apple faces over alleged anti-competitive practices in cloud storage. In the US, Apple is also embroiled in a legal dispute with the Department of Justice, which has accused it of monopolistic practices in the sector. In a recent court filing, Apple asked a federal judge to dismiss the case, describing its flagship product, the iPhone, as “one of the most innovative and consumer-friendly products ever made,” per The Verge.

Source: The Verge