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Apple is facing a £3 billion (about $3.75 billion) lawsuit from a consumer group that alleges the iPhone maker violated UK competition law by “forcing” customers to use its iCloud service.
In its press release, UK consumer watchdog Which? says that Apple gave its iCloud storage service preferential treatment and encouraged users to use the service to store photos, videos, and other data while making it difficult to use alternative providers.
“We believe Apple customers are owed nearly £3 billion as a result of the tech giant forcing its iCloud services on customers and cutting off competition from rival services,” Which? said in its announcement. The group alleges that Apple’s monopoly allowed the company to overcharge users for iCloud subscriptions, and says it’s taken legal action to seek damages for 40 million Apple users in the UK who were “locked in” to using the service since October 2015.
Apple does not allow users to back up their data via third-party storage providers. Apple users receive 5GB of free iCloud storage — which hasn’t increased since the service was introduced in 2011 — and are required to pay monthly fees starting at 99p ($0.99 in the US) if they need more. iPhone users can manually back up their devices by transferring data to a computer, however.
“iOS has a monopoly and is in control of Apple’s operating systems and it is incumbent on Apple not to use that dominance to gain an unfair advantage in related markets, like the cloud storage market. But that is exactly what has happened.” Which? 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.”
Apple is facing similar legal action in the US, with the Department of Justice accusing the iPhone maker of unlawfully monopolizing the market for cloud storage. In August, Apple asked a federal judge to dismiss the case and described the iPhone as “one of the most innovative and consumer-friendly products ever made.”
“Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for data storage,” Apple said in a statement for Forbes responding to the Which? lawsuit. “We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise.”
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