Apple iCloud: tech giant accused of ‘ripping-off’ 40m British customers - legal action explained

• Which? has filed legal action against Apple on behalf of British customers. 
• The iPhone maker is accused of ‘trapping’ customers into using its iCloud service.
• The consumer champion claims Apple has been ‘overcharging’ customers. 
• Apple strongly denies the accusations.

Apple has been accused of “ripping-off” millions of British customers over its cloud storage service. The tech titan is facing accusations of effectively ‘trapping’ 40m users into using iCloud and then “overcharging them”. 

Which?, the consumer choice giant, has filed legal action with the Competition Appeal Tribunal. It claims Apple has breached UK competition law by giving its iCloud storage service preferential treatment and locking customers into using it. 

Apple strongly denies the accusations and said it would “vigorously defend” any legal action.

If you have ever owned an Apple device - iPhone, iPad, etc - you are probably familiar with iCloud. Especially how you are encouraged to subscribe for extra space. 

Here’s what you need to know about the claims.

The latest national headlines in your inbox - sign up to UK Today.

Apple customers ‘owed £3bn’ 

Announcing the legal action, Which? Chief Executive Anabel Hoult said: “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.  

“By bringing this claim, Which? is showing big corporations like Apple that they cannot rip off UK consumers without facing repercussions. Taking this legal action means we can help consumers to get the redress that they are owed, deter similar behaviour in the future and create a better, more competitive market.”

How much does iCloud subscriptions cost? 

Apple has a range of different tiers for its iCloud service, starting at £0.99 per month for 50GB of storage. However the price can stretch all the way up to £54.99 monthly for 12TB (terabyte). 

Why has legal action been filed? 

iOS has a monopoly and is in control of Apple’s operating systems - users are unable to install Android’s OS on iPhones for example. Which? warns it is incumbent on Apple not to use that dominance to gain an unfair advantage in related markets, like the cloud storage market. 

The consumer giant claims: “But that is exactly what has happened.” Adding: “A key tactic to achieve this has been encouraging users to sign up to iCloud for storage of photos, videos and other data while simultaneously making it difficult to use alternative providers, including because Apple does not allow customers to store or back-up all of their phone’s data with a third-party provider. iOS users then have to pay for the service once photos, notes, messages and other data go over the free 5GB limit.” 

Being “locked-in” to this service over time could come at a significant cost in terms of price, quality and choice, Which? explains. It also adds the resulting lack of competition has led to consumers “being overcharged each year”. 

The price of iCloud monthly subscriptions have increased by up to £13.36 this year, Which? claims. The company adds: “Apple raised the price of iCloud for UK consumers by between 20% and 29% across its storage tiers in 2023.” 

Which? is seeking damages for all affected Apple customers that have obtained iCloud services since 1st October 2015. It estimates that individual consumers could be owed an average of £70, depending on how long they have been paying for the services during that period.

What has Apple said about the legal action?

In a statement, Apple said: “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.

“In addition, we work hard to make data transfer as easy as possible — whether it is to iCloud or another service.

“We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise.”

Are you an Apple user and do you feel ‘ripped-off’ over iCloud? Share your thoughts by emailing me: [email protected].