Apple Faces £3 Billion Lawsuit Over iCloud Pricing, Alleged "Rip Off" Practices
On November 13, an Apple iCloud lawsuit was issued by British consumer group, Which?, accusing the giant of securing 40 million British customers into its iCloud service and charging them exaggerated prices.
The £3 billion iCloud lawsuit states that Apple has overcharged users for cloud storage, with some customers potentially receiving compensation of up to £70 if the case is successful.
The Apple iCloud lawsuit is part of a legal actions plan against big tech companies in the UK. It is another example of the “growing tide of large class actions against big tech” which has “operated without sufficient constraint”, Toby Starr from legal firm Humphries Kerstetter told the BBC.
Allegations of Anti-Competitive Practices
The class action lawsuit against Apple iCloud centers around the giant’s iCloud storage service – offers free digital storage for users, if storage is full, encouraging them to pay for additional space.
Prices range from £0.99 a month for 50GB to £54.99 a month for 12TB. Which? argues that Apple has been tricking users since 2015, by limiting competition by restricting access to third-party storage services.
Anabel Hoult, which? Chief Executive stated that iCloud storage class action lawsuit aims to hold Apple accountable and threaten other tech companies on market dominance that results in higher prices for consumers.
“By bringing this claim, Which? is showing big corporations like Apple that they cannot rip off UK consumers without facing repercussions,” Anabel Hoult said.
In response, Apple has denied any wrongdoing, saying in a statement that they “reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise.”
Facebook, Google, Steam, and several UK mobile providers are also facing similar claims in the Competition Appeal Tribunal.
“While these claims are still in their early stages and can take years to resolve, they are likely to lead to significant settlements and decisions that could impact the business practices of these tech giants,” Starr told the BBC.
Which? has requested the international law firm Willkie Farr & Gallagher to represent them and also emphasized that the iCloud class action lawsuit funders will not receive a percentage of any damages but will be paid fees as the case progresses.
Legal experts, such as Alan Davis from Pinsent Masons, said that this case is part of a broader trend of upcoming legal actions against tech firms.
“The very high value of damages in these cases is likely to encourage further claims, especially as the role of litigation funders becomes more prominent in supporting consumer action,” Davis explained.
Future of Cloud Service Competition
As well as the Apple iCloud lawsuit, the Competition and Markets Authority (CMA) announced an investigation into cloud services, including those provided by Apple, Google, and Amazon. While this investigation may take time, it could influence the ongoing legal challenges and potentially lead to regulatory action against companies that dominate the cloud storage space.
Which? has called on Apple to resolve the issue without further legal actions, urging the big tech to refund affected customers and make its cloud services available to greater competition.
Final Thoughts
Apple iCloud class action lawsuit highlights that consumers are becoming more vocal in their concerns against perceived anti-competitive behavior from the Magnificent 7 tech giants.
Whether the lawsuit results in a £3 billion payout or sparks broader regulatory reforms, at the end of the day, it signals a growing effort towards greater accountability in the UK since it is ensuring legal operations of tech giants, hopefully, encouraging other regions to take similar steps.
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