Apple Inc. is facing a 3 billion GBP collective action in the United Kingdom, filed by the consumer protection organization Which?. The lawsuit claims that Apple has overcharged millions of UK customers for its iCloud storage services.
The legal challenge targets what Which? refers to as Apple’s “exorbitant pricing” for iCloud storage, accusing the company of locking consumers into high charges for cloud storage by making iCloud the default and often the only viable option for backing up data on Apple devices such as iPhones, iPads, and Macs.
iCloud, integrated into all Apple devices, is the American technology company’s cloud storage solution. This service enables users to securely store photos, files, and various data online, ensuring that their information is backed up and accessible whenever required. Each user has 5GB of complimentary storage; however, additional storage capacity is available for purchase, with subscription plans ranging from 99p to 54.99 pounds per month.
If successful, the lawsuit could see affected customers receiving compensation of approximately 70 pounds each. The class action is estimated to cover 40 million UK consumers who have used and paid for iCloud storage since October 2015. Which? argues that Apple’s pricing structure leaves users with limited alternatives, creating a “pay up or lose out” situation.
In response, Apple has denied any wrongdoing and announced plans to “vigorously defend” itself against the claims in court. The lawsuit comes just months after a similar legal challenge was filed against the tech giant in the US, where consumers have also raised concerns about iCloud pricing practices. While the US case is still ongoing, it has already contributed to heightened scrutiny of Apple’s pricing strategy.
This class action lawsuit highlights growing concerns regarding the market power of major tech companies.
On 1 November 2022, the Digital Markets Act (DMA), a new European Union regulation, came into effect. The majority of its provisions became applicable on 2 May 2023. The primary objective of the DMA is to enhance competition within European digital markets by preventing major corporations from misusing their market dominance and facilitating the entry of new competitors. This regulation specifically targets the largest digital platforms operating within the European Union.
In September 2023, the EU identified twenty-two services across six companies—Alphabet (Google), Amazon, Apple, ByteDance (TikTok), Meta, and Microsoft—as “core platform services,” referred to as “gatekeepers.” These companies were required to comply with all provisions of the Act by 6 March 2024.
If the lawsuit proves successful, it could set a precedent for further legal action and increased regulatory oversight of the business practices of large technology platforms, particularly in relation to pricing and competition.
