Consumer advocacy group Which? has launched a collective legal claim against Apple, alleging the tech giant charged UK customers excessive fees for its iCloud storage by limiting competition. The case, which could see millions receive compensation, argues that Apple abused its dominant market position by steering users to pay “excessive fees” for its iCloud service without offering a choice of alternative cloud storage providers.
The claim focuses on iCloud subscriptions obtained on or after October 1, 2015, affecting anyone who used iCloud on an Apple device in that time. tI alleges that Apple’s conduct locked users into its ecosystem, stifled competition, and allowed the company to charge higher-than-market rates for cloud storage. Which? estimates that if successful, consumers could be awarded an average of £70 each, a figure that assumes users overpaid a small amount every month for the last 9 years.
This case is part of a broader trend of regulatory scrutiny facing Apple worldwide. Most notably, the company has come under fire for alleged anti-competitive practices, with pressure from the EU forcing the company to make changes including third-party app stores for Europe. More recently, EU regulations have nudged Apple to open up the exclusive features of AirPods and Apple Pencil to encourage fair competition from other manufacturers.
Which? is bringing this legal action under the UK’s “opt-out” collective claims process, meaning all eligible UK consumers will automatically be included unless they choose to exclude themselves. Although those in other parts of the world won’t get a slice of any potential payout, keep a close eye on this one – the outcome could set a precedent that impacts how Apple operates globally for years to come.