Among the Big Tech firms, Apple has come under the most scrutiny in Europe over its so-called monopolistic policies. Most allegations against Apple are brought up by the European Commission, resulting in significant changes to App Store policies. However, this time, a UK consumer watchdog has Apple under its radar over forcing users to stick with the iCloud and curbing competition.
As the consumer watchdog Which? noted on its website that Apple has locked over 40 million of its customers in the UK into iCloud at rip-off prices. The lawsuit alleges that Apple has given its iCloud special treatment by encouraging users to sign up for the cloud storage service while hindering them from using alternative services.
Which? added that Apple customers are not allowed to store or back up their phone"s data in third-party cloud services. Given that the iCloud free storage sits at only 5GB, users with storage shortages have to buy additional cloud space from Apple.
The lawsuit was filed with the Competition Appeal Tribunal and demanded £3 billion ($3.75 billion) in compensation for iCloud users in the UK who had been paying for the service since October 1, 2015. Since the UK left the EU in 2020, the European Commission has no authority over the case.
According to Anabel Hoult, Which? Chief Executive:
"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."
In response, Apple emphasized that its users are not obligated to use iCloud and are free to use third-party platforms. In a statement to Computer Weekly, an Apple 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."
In the meantime, the US Department of Justice has also brought Apple under scrutiny over similar allegations of locking customers into its ecosystem and hindering them from freely accessing rival platforms.