Which? Takes Legal Action Against Apple for Alleged iCloud Monopoly, Potential Compensation for 40 Million UK Users.
Consumer rights organization Which? has initiated legal action against Apple, accusing the tech giant of violating UK competition regulations by compelling its customers to use its iCloud storage services. If the lawsuit proves successful, an estimated 40 million Apple users in the UK could be entitled to compensation, with the potential for individual claims reaching £70 per person.
The crux of the legal case revolves around Apple’s iCloud service, which the consumer group argues has been used to "trap" Apple device owners into using it for data storage. According to Which?, Apple has engaged in practices that suppress competition by promoting iCloud while creating barriers for users who wish to use alternative third-party cloud storage providers.
Which? asserts that Apple has abused its dominant position in the market, effectively coercing users into subscribing to iCloud. Some of the core allegations include:
- Excessive Charges: Customers are allegedly charged high fees once they exceed the free 5GB storage limit, pushing them to rely exclusively on iCloud for backing up important data such as photos, videos, and notes.
- Restricting Competition: Which? claims Apple blocks users from storing or backing up their iPhone data with other third-party providers. This, the group argues, infringes upon UK competition laws designed to ensure fairness in the market.
- Promoting iCloud Over Alternatives: Apple is accused of aggressively promoting its own cloud storage service while making it difficult for users to transfer data to competitors, thereby stifling competition.
Apple has strongly denied the accusations, insisting that its customers have the freedom to choose from a wide range of cloud storage options. A spokesperson for the company stated:
"Apple believes in providing our customers with choices. Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for data storage."
Apple also pointed out that almost 50% of its UK customers do not use iCloud, and the pricing for iCloud is in line with other cloud storage providers. The company maintains that it is committed to making data transfer between services as smooth as possible.
The lawsuit, filed by Which? in the UK, targets all Apple customers in the country who have used iCloud services since October 1, 2015. If successful, customers who meet the criteria could be entitled to financial compensation, with estimates suggesting an average payout of £70 per individual.
Importantly, the legal action isn’t limited to UK residents alone. Former UK residents who have moved abroad but used iCloud services while living in the UK may also be eligible for compensation.
The outcome of this lawsuit could have significant ramifications not only for Apple but for the broader tech industry. If Apple is found to have violated competition laws, the case could set a precedent that challenges how large tech corporations engage with consumers in the digital space.
Anabel Hoult, the Chief Executive of Which? stated:
"By bringing this claim, Which? is showing big corporations like Apple that they cannot rip off UK consumers without facing repercussions. We aim to create a better, more competitive market."
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