Apple hit by Which? with £3bn legal claim that iCloud service charges are ‘anti-competitive’

Consumers overcharged

This situation has, according to Which?, resulted in consumers being overcharged, on the basis that Apple has increased the price of using iCloud by between 20% and 29% across its storage tiers in 2023.

According to the organisation’s calculations, each affected iCloud user could be due compensation in the region of £70, with Which? urging Apple to resolve the claim without litigation by simply refunding users this money.

Anabel Hoult, chief executive of Which?, said the legal action is about much more than trying to recoup the monies it claims iCloud users have overpaid to Apple over the years.

“By bringing this claim, Which? is showing big corporations like Apple that they cannot rip off UK consumers without facing repercussions,” she said.

“Taking this legal action means we can help consumers to get the redress that they are owed, deter similar behaviour in the future, and create a better, more competitive market.”

In a statement to Computer Weekly, an Apple spokesperson responded to the claim by denying that Apple users are forced to use iCloud. 

“Apple believes in providing our customers with choices,” the spokesperson said. “Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for data storage. In addition, we work hard to make data transfer as easy as possible – whether it’s to iCloud or another service. We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise.”

News of the claim comes at a time when the anti-competitive behaviour of other cloud-touting technology giants, namely Microsoft and Amazon Web Services, is under scrutiny from competition watchdogs in various countries.

That includes in the UK, where the Competition and Markets Authority (CMA) is known to be preparing to release the preliminary findings from its ongoing investigation into the UK cloud infrastructure services market in the coming weeks.

Katherine Kirrage, digital markets and competition partner at law firm Osborne Clarke, said the timing of this legal action against Apple is interesting, as the CMA is set to gain even stronger regulatory power over the UK’s digital markets, under the terms of the Digital Markets Competition and Consumers Act (DMCCA).

“As the CMA awaits its DMCCA powers early next year, this action by Which? is an example of the multiple ways in which companies are bringing competition law complaints,” she said.

“These range from lobbying for regulation of players such as Apple, to bringing standalone litigation aimed, not only at winning damages, but also changing future conduct. Litigation is likely to become an increasingly important part of the regulatory landscape, particularly in digital markets.”