Apple hit by huge iCloud ‘lock in’ lawsuit that accuses it of ‘rip-off prices’

• Which? argues that Apple is blocking consumers from cheaper alternatives
• Apple offers 5GB of iCloud space for free, but you must pay for more
• UK brand Which? is seeking £3bn ($3.8bn) in damages from Apple

Apple has long been accused of being miserly with its iCloud online storage tiers, but things have rarely move beyond the realm of truculent grumbling. That’s all changing now, though, as British consumer advocacy brand Which? has launched a £3bn ($3.8bn) lawsuit accusing Apple of ripping off its customers by locking them into expensive iCloud tiers.

When you buy an Apple device, you are given 5GB of iCloud storage for free. If you want to upgrade, you can choose from a range of paid-for iCloud options. However, Which? says that users are not offered a choice of rival cloud storage services, and instead have to use iCloud because Apple blocks certain data on your device from being uploaded to competitors’ services.

A separate lawsuit from March 2024 claims that Apple “arbitrarily sequesters” essential app data and device settings that would be required for a full device backup.

According to the legal action from Which?, “Apple iPhone and iPad iOS users have had little choice but to use Apple’s own iCloud service, and therefore Apple can charge users more than if it had to compete with rival cloud storage services.”

The Which? lawsuit is seeking damages of £3bn (around $3.8bn) for around 40 million UK customers, which would mean a payout of about £70 (about $90) for each British person who has used iCloud services since October 1, 2015. Even for a company of Apple’s size and wealth, that would be a sizable payout.

Analysis: We’ve been here before

The argument from Which? is essentially that Apple is unlawfully steering users towards its own services instead of giving them a choice.

Apple has found itself in hot water over similar issues in the past, having been sued by Epic Games for, among other things, preventing developers from directing customers to other services that might save them money. In that case, the judge found against Apple and forced it to change its anti-steering practices, so Which? might be hopeful of a similar ruling in its own lawsuit.

Apple will likely say that it prevents some essential files from being backed up to competitors’ services because they contain important information whose security Apple cannot guarantee if they fall outside its control. Whether that argument is enough to win the case against Which? remains to be seen.

Apple could easily allay consumer discontent by offering more than a measly 5GB of iCloud storage for free. Granted, upgrading to the next iCloud tier (50GB) is cheap at $0.99 a month, but with many of the best phones and computers offering much more in the way of free storage, Apple fans shouldn’t have to pay to get more than 5GB of online drive space.

Ultimately, though, Apple is not forcing anyone to upgrade to more expensive iCloud tiers – you can buy a device with more storage space or perform a full back up using a desktop app like iMazing, for example. But if the lawsuit from Which? compels Apple to be more generous with its free iCloud offering, that itself would be a win for consumers.

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