Apple faces a major new legal battle in the United Kingdom. The consumer association Which? has just filed a collective complaint against the Californian giant, accusing it of anti-competitive practices concerning its iCloud cloud storage service. This legal action, which could cost Apple nearly $3.8 billion, represents approximately 40 million British users who have allegedly been harmed by these practices since 2015.
A contested locking of the cloud ecosystem
The Which? claims that Apple has deliberately made it difficult for iPhone and iPad users to use alternatives to iCloud. The heart of the problem lies in the inability of third-party cloud services to deeply integrate their solutions into iOS for complete data backup. Once the free 5 GB is used up, users find themselves forced to subscribe to iCloud+ to continue backing up their important data. This practice would have allowed Apple to maintain prices higher than in a truly competitive market, including an increase in prices of 20 to 29% in 2023 for British users.
The legal action potentially affects 40 million UK users who have used iCloud since October 2015. Which? estimates that each user could receive around £70 in compensation. The procedure, filed before the Competition Appeal Tribunal, is part of a broader movement to challenge the practices of tech giants. Apple is not only targeted in the United Kingdom, since a similar action is underway in the United States.
Apple’s defense and future challenges
Faced with these accusations, Apple maintains a firm position. The company says its users are not required to use iCloud and that nearly 50% of its customer base does not have an iCloud+ subscription. Apple spokesperson Tom Parker emphasizes that the company “works hard to make data transfer as simple as possible” and that its prices are in line with competitors.
Apple defends itself against TechCrunch :
Apple believes in freedom of choice for its customers. Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for storing their data. Plus, we work hard to make transferring data as easy as possible, whether to iCloud or another service. We reject any suggestion that our practices regarding iCloud are anti-competitive and will vigorously defend against any legal action claiming otherwise.
This case adds to other antitrust disputes that Apple faces, notably concerning the App Store in the United Kingdom and an alleged price agreement with Amazon. It illustrates the growing pressure on big tech companies to ensure fair competition and protect consumer rights.
The outcome of this class action could have significant implications for how cloud services are integrated into mobile operating systems, and potentially lead to even greater openness of the iOS ecosystem. For example, Apple might be required to allow iMessage or photos to be synced to services other than iCloud.
