Apple Hit by £3bn UK Anti-trust Lawsuit over iCloud 📱

Hey there! 👋

Apple is facing a massive £3 billion lawsuit in the UK over allegations that it is forcing customers to use iCloud. The consumer rights group Which? claims the tech giant has abused its market position to lock millions of users into its cloud storage service while charging inflated prices.

Let’s explore what happened, how this affects consumers, and how a law firm could be involved.

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What did Apple do? 🍎

The legal action is centred around Apple’s dominant position in the mobile operating system market through iOS. Which? Alleges that Apple has exploited this dominance to effectively “trap” around 40 million UK customers into using its iCloud for their cloud storage needs.

Here’s where it gets interesting: Apple provides just 5GB of free storage to users, which then allegedly makes it difficult to use alternative cloud providers. The lawsuit claims Apple has:

• Created technical restrictions that prevent users from storing certain file types with other providers.

• Implemented “unfair choice architecture” favouring iCloud.

• Raised UK prices by up to 29% in 2023 across its storage tiers.

Storage plans currently range from 99p to £54.99 monthly with Which? estimating that users have been overcharged by up to £13.36 this year alone.

Apple strongly contests these allegations, stating that users are not required to use iCloud and can choose from a wide range of third-party alternatives. And as expected… Apple plans to defend against these claims.

What does this mean for consumers?📊

This case is part of a growing trend of antitrust actions against tech giants. If successful, the lawsuit could have significant implications:

• Individual users might receive £70 in compensation depending on how long they have been paying for the services throughout that time.

• Apple could be forced to open up iOS to allow easier access to alternative cloud services.

• The cloud storage market could become more competitive, potentially leading to lower prices, which benefits consumers.

This case also showcases the power of the UK’s Consumer Rights Act 2015, which allows for “opt-out” collective proceedings - making it easier for consumers to challenge large corporations.

How could law firms be involved? ⚖️

For Which? (The Claimant Side)

• The US-based law firm Willkie Farr & Gallagher is advising Which? on the class action against Apple. They may focus on demonstrating Apple’s abuse of market dominance, the impact on consumer choice, the extent of financial damage to users, and how this led to 40 million UK users subscribing to iCloud.

For Apple (The Defense Side)

• Apple’s legal team may focus on defending against these claims by trying to prove that iCloud is an optional service and that users have access to multiple alternative cloud storage providers. They may argue that their pricing is competitive and that the $3 billion damages calculation is fundamentally flawed. Their goal may be to show that users choose iCloud for its quality and integration, not because they are forced to use it.

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I hope you enjoyed this article. See you next week! 👋

Written by Chirag Morar