Apple faces a new antitrust lawsuit of $3.75 billion over iCloud storage.
It faces a similar action in the United States.
Apple is facing a £3 billion (around $3.75 billion) lawsuit filed by a group of consumers who claim that the US company violated UK competition laws by "forcing" customers to use its iCloud service. In a press release, the UK consumer advocacy group Which? states that Apple gave preferential treatment to its iCloud storage service, promoting its use for storing photos, videos, and other data while making it difficult to access alternative providers.
Which? believes that Apple users should receive nearly £3 billion because the tech company imposed its iCloud services and hindered competition from other services. The organization argues that Apple’s monopoly allowed it to charge excessive prices for iCloud subscriptions, and it has decided to take legal action to seek compensation for 40 million Apple users in the UK who have been "trapped" using this service since October 2015.
Apple does not allow users to back up their data through third-party storage providers. Apple users receive 5 GB of free storage on iCloud, a limit that has not increased since the service was launched in 2011, and they must pay monthly fees starting at 99p ($0.99 in the US) if they need more space. Although iPhone users can manually back up by transferring data to a computer.
The Which? organization argues that "iOS has a monopoly and controls Apple’s operating systems, and it is Apple's responsibility not to use that dominance to gain an unfair advantage in related markets, such as cloud storage. But that is precisely what has occurred." Additionally, they state that "initiating this legal action allows us to help consumers obtain the compensation they deserve, deter similar behavior in the future, and create a better and more competitive market."
On the other hand, Apple is also facing similar legal actions in the US, where the Department of Justice accuses it of illegally monopolizing the cloud storage market. In August, the company asked a federal judge to dismiss the case, describing the iPhone as "one of the most innovative and consumer-friendly products ever made."
In response to the Which? lawsuit, Apple stated: "Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for data storage. We reject any suggestion that our practices in iCloud are anti-competitive and will vigorously defend against any legal claims to the contrary."
