Apple faces £3 billion legal claim over iCloud competition breach

Company has encouraged users to sign up to iCloud for storage and is favouring its products, Which? says

Which? says Apple has made it difficult to use alternatives, ultimately stifling competition. PA

Apple is facing a £3 billion ($4.4bn) legal case over claims the technology company has breached competition law by “forcing its iCloud services on customers”.

British consumer group Which? says Apple has encouraged users to sign up to iCloud to store photos, videos and other data and is therefore favouring its own products, while simultaneously making it difficult to use alternatives, ultimately stifling competition.

The group has based the lawsuit on Apple not allowing customers to store or back up all of their phone’s data with a third-party provider, and users of its iOS operating system have to pay for the service when the amount of data being stored goes over the 5GB free limit.

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In a claim from Which?, which has been filed with the Competition Appeal Tribunal, the consumer group also accuses Apple of overcharging users for iCloud subscriptions, partly because the company’s dominance of the market means it is difficult for alternatives to emerge and provide competition.

The group said it is seeking damages for all affected Apple customers who have obtained iCloud services since October 1 2015, which it estimates is about 40 million people, and that customers could be owed an average of £70, depending on how long they have been paying for the service.

Which? has urged Apple to resolve the claim without the need for litigation by offering consumers their money back and opening up its operating system to allow users more choice for cloud services.

“Apple believes in providing our customers with choices,” Apple 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 is to iCloud or another service.

“We reject any suggestion that our iCloud practices are anticompetitive and will vigorously defend against any legal claim otherwise.”

Which? chief executive Anabel Hoult said: “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.

“By bringing this claim, Which? is showing big corporations like Apple that they cannot rip off UK consumers without facing repercussions.

“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.”