Apple Faces £3 Billion Claim Over iCloud Pricing and Anti-Competitive Practices
Apple Under Fire for Alleged iCloud Abuse
The tech giant Apple is once again making headlines, this time due to a £3 billion legal claim filed in the UK by consumer advocacy group Which?. The lawsuit accuses Apple of unfair business practices related to how it bundles its iCloud storage service, potentially locking out competition and forcing iPhone users to pay unfair fees for cloud storage.
Allegations of Market Dominance Abuse
At the heart of the lawsuit is a claim that Apple has leveraged its dominant position in the smartphone market to push customers toward using its iCloud service. According to Which?, Apple has made it challenging for users to store photos, messages, videos, and other data with alternative third-party cloud providers. The competition watchdog argues that Apple's ecosystem essentially 'locks in' users to their cloud services and eventually forces them to pay for more space beyond the free 5GB limit, which leads to recurring charges.
Which? says Apple’s iCloud policies have impacted over 40 million iPhone and iPad users in the UK who have used the service since 2015. These users were allegedly forced to pay inflated prices—some customers noting price increases as high as 29% in recent years. Furthermore, the lawsuit seeks to highlight that Apple’s tactics could infringe on consumer rights, calling on the tech giant to open up its operating system to enable greater competition in the cloud storage arena.
UK and European Law Could Force Changes
The legal challenge echoes similar concerns raised by regulators globally, particularly in the European Union (EU), where the Digital Markets Act (DMA) already mandates companies like Apple to allow more flexibility in platform features such as using alternative browsers and even alternative app stores. The lawsuit may push regulatory bodies to demand targeted changes encouraging Apple to relax its tight grip over iCloud storage services, allowing for fair competition against third-party providers. In fact, under EU regulations, Apple has already had to enable greater access to third-party browsers updated alongside Safari, raising hopes that cloud storage services could follow suit soon.
Comparisons to Microsoft’s Strategy with OneDrive
Apple isn't the only tech company drawing regulatory scrutiny for its cloud storage services. Microsoft has also faced similar accusations surrounding its cloud storage service, OneDrive. Critics have pointed out that Microsoft tightly integrates OneDrive with its Windows operating system during setup, making it difficult for users to avoid using the service. In both cases, regulators argue that such practices could harm the development of a competitive cloud storage market.
What Happens Next?
Which? is seeking class-action status for the case, which could bring the claim to the Competition Appeal Tribunal. If successful, Apple could be forced to pay significant damages—potentially averaging £70 for each affected customer—and revise its policies governing iCloud services in the UK. Additionally, consumer advocacy groups are urging Apple to fully open iOS to enable competition in cloud storage services, potentially making it easier for users to switch between different providers without friction.
Apple, for its part, has not issued an official response to the UK lawsuit but previously defended its practices in similar cases within the United States, emphasizing that customers have alternatives like Dropbox, Google Drive, and Microsoft OneDrive. However, the persistence of competition complaints suggests that deeper structural changes may be required to satisfy global calls for fairer cloud storage options.
The result of this lawsuit, once finalized, could lead to significant ripple effects for both Apple and the cloud storage industry worldwide, pushing for greater competition and consumer choice.
