Apple sued over iCloud practices, consumer overcharges

British consumer advocacy group Which? announced plans to sue Apple, alleging that the tech company violated competition laws by effectively locking its users into its iCloud service, Reuters news report said.

Apple iPhone with AI features
Apple iPhone with AI features

Top Apple iCloud competitors include Black Hole, BlockDoc, Box, Digiboxx, among others. Apple is the largest selling smartphone brand in the UK with more than 50 percent share. Samsung is the second largest smartphone maker in the UK.

Which? claims that Apple’s promotion of iCloud for storing photos, videos, and other data made it challenging for users to opt for alternative storage providers, leading customers to pay for iCloud subscriptions once they exceeded the free 5GB storage limit.

For comparison, Samsung says 15 GB of free storage is available for each Samsung account. Samsung also provides unlimited storage for basic native applications such as Contacts and Calendar.

The advocacy group estimates that Apple’s iCloud practices have led to consumers being overcharged by as much as £13.36 (approximately $16.98) annually. Which? argues that this has impacted around 40 million Apple customers in the UK over the past nine years and seeks up to £3 billion in compensation on behalf of affected users.

Apple responded, denying the allegations, asserting that iCloud is optional and that many customers utilize third-party storage alternatives. “We reject any suggestion that our iCloud practices are anticompetitive and will vigorously defend against any legal claim otherwise,” Apple said in a statement.

Anabel Hoult, Chief Executive of Which?, stated that the legal action aims to secure compensation for affected consumers, deter future anticompetitive practices, and promote a more competitive market. The group intends to file the claim with the UK’s Competition Appeal Tribunal, setting the stage for a high-profile legal battle with potential industry-wide implications.

Baburajan Kizhakedath

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