Apple accused of trapping and ripping off 40m iCloud customers

Apple is facing serious accusations from a consumer group called Which? They claim that the tech giant has effectively locked 40 million British customers into its iCloud service and is charging them excessive prices. iCloud is Apple's online storage service that allows users to back up their photos, videos, messages, and other important data. According to Which? , if their legal action is successful, Apple could be forced to pay out around £3 billion, which would mean that each affected customer could receive approximately £70. Apple has responded to these claims by stating that users are not obligated to use iCloud and that many customers choose to use other storage options. The company insists that it works diligently to facilitate data transfers to other services. This situation is part of a larger trend of legal actions against major technology companies, which have been accused of operating without enough oversight. Toby Starr, a lawyer from Humphries Kerstetter, noted that many of these cases are just beginning and could take years to resolve, but they may lead to significant changes in how these companies operate.

Users of Apple products receive a limited amount of free storage, but after that, they are encouraged to pay for additional space on iCloud. The pricing for this service ranges from £0. 99 per month for 50GB to £54. 99 per month for 12TB. Apple restricts access to its products for competing storage services, citing security concerns. However, Which? argues that this practice has effectively trapped customers into using iCloud and has led to overcharging. Anabel Hoult, the chief executive of Which? , stated that by pursuing this legal action, they aim to hold large corporations like Apple accountable for their pricing practices. She emphasized that this lawsuit is intended to help consumers receive the compensation they deserve and to promote a more competitive market.

Apple has firmly denied the allegations made by Which? and has stated that it will vigorously defend itself against any legal claims. The legal action is being funded by Litigation Capital Management, and Which? has engaged the international law firm Willkie Farr & Gallagher to represent them. This law firm will receive payments as the case progresses and will earn additional fees if they win. Alan Davis, a lawyer from Pinsent Masons, believes that more similar cases are likely to emerge in the future due to the high potential damages involved and the financial backing from litigation funders. He pointed out that proving market abuse will be the responsibility of the claimant, especially since there have been no infringement decisions under UK or EU competition law. Legal actions against large tech firms can be lengthy, and Which? has urged Apple to resolve this matter without going to court, seeking refunds for consumers and increased competition in the market.