5 days Ago By Kamya Pandey
Explainer Briefly Slides United Kingdom-based consumer group Which? has filed a £3 billion lawsuit against Apple, claiming that the company allegedly violated the UK’s consumer protection law. The group claims that Apple engaged in anti-competitive practices by giving its iCloud storage service preferential treatment and through “trapping customers with Apple devices into using iCloud.” It mentions that the company gets users to sign up for iCloud for storage of photos, videos, and other data while simultaneously making it difficult to use alternative providers.
One of the ways it makes the process difficult for users to switch providers is by not allowing them to store or back up all of their phone’s data with a third-party provider. How is Apple overcharging customers for iCloud? Which? mentions that once a user ends up storing over 5GB of free data on iCloud, Apple overcharges them for additional storage. “Being “locked-in” to this service over time could come at a significant cost in terms of price, quality and choice,” it explains, adding that the company increased the price of iCloud between 20% and 29% across its storage tiers in the UK in 2023.
The consumer group also mentioned that since Apple is a dominant player in the smartphone and tablet market, the fact that it locks in customers into Apple’s cloud services creates a barrier for any new cloud service providers looking to enter the market. Which? seeks damages from for its alleged anti-competitive conduct since October 1, 2015. It estimates that the company owes individual customers in the UK an average of £70, depending on how long they have been paying for iCloud services.
Further, the consumer group adds that it is “urging Apple to resolve this claim without the need for litigation by offering consumers their money back and opening up iOS to allow users a real choice for cloud services.” Other ongoing competition inquiries into Apple: The consumer group’s legal claim against Apple comes as the company is expected to face a fine for non-compliance with the European Union’s Digital Markets Act (DMA). The European Commission found Apple non-compliant in March this year, with the act for its alleged anti-steering policies that prevent developers from steering their customers to alternative channels to access their services.
Similarly, the US government also filed a lawsuit against the company in June this year , for its alleged monopoly in the smartphone market. The lawsuit argues that Apple limits the functionality of third-party messaging apps from incorporating features such as background operation, and camera access for video calls. By doing so, it discourages users from switching to Android devices.
Further, the lawsuit also states that it limits key functions on non-Apple smartwatches, disincentivizing users from buying smartwatches from other brands. Also read:.
