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UK Consumer Group "Which?" Challenges Apple over iCloud Lock-In, Seeks £3 Billion Compensation

Word on the StreetWednesday, Nov 13, 2024 8:00 pm ET
1min read

The UK consumer organization, "Which?", announced its intention to file a lawsuit against Apple Inc. on Thursday, alleging the technology giant has violated competition law by locking millions of users into its iCloud service. The organization argues that Apple encourages users to subscribe to iCloud for storing photos, videos, and other data, while simultaneously making it difficult for users to switch to alternative providers. As users surpass the free 5GB data limit, they are required to pay for continued service.

This alleged practice, according to the consumer group, has resulted in a lack of competition and has caused consumers to overpay by £13.36 (approximately $16.98) annually through monthly iCloud subscriptions. The claim is that if they achieve success in this legal action, around 40 million UK Apple users who have utilized iCloud over the past nine years could be entitled to compensation.

Annabel Holt, Chief Executive of "Which?", expressed that the organization believes Apple's approach has forced consumers into paying nearly £3 billion more over the years. She remarked, "By taking this legal action, we aim to help consumers receive the compensation they deserve and prevent future occurrences, striving for a better and more competitive market environment."

The consumer organization plans to present its claim before the UK's Competition Appeal Tribunal. In response, Apple has stated that its users are not compelled to use iCloud and many choose third-party alternatives. The company firmly denies any claims regarding anti-competitive practices related to iCloud and has pledged to vigorously defend against such accusations.

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mrkitanakahn
11/14
As a small business owner who's invested in Apple ecosystem, the thought of £3 billion in compensation is terrifying. Hope this doesn't lead to a significant hike in Apple's service prices for us who actually pay for their services out of pocket.
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I_kove_crackers
11/14
This could set a worrying precedent for other tech giants. What's next? Suing Google for making us subscribe to Google Drive? Seeking clarification on the potential broader implications.
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pimppapy
11/14
Finally, someone's calling out Apple's shady business practices! This is just the tip of the iceberg. Hope 'Which?' takes on more of their anti-consumer tactics.
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MustiXV
11/14
Not sure I agree with the premise. I chose to use iCloud and pay for storage. It's a premium service for a reason. Don't see how this affects competition negatively.
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Solidplum101
11/14
40 million users and £3 billion in compensation? This is either a massive overestimation or a clever PR stunt. Waiting for the actual tribunal results before believing the hype.
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LarryKingsGhost
11/14
Lock-in schemes need to be broken down! Good on 'Which?' for standing up for consumers like this. Justice (and compensation) would be well-deserved here.
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