Apple Faces UK Class Action Over Data Storage Allegations

Apple Inc. faces a lawsuit from a UK consumer group over allegations its monopoly on data storage breaches competition law, in a fresh class action that could ultimately cost the tech giant billions.

The iCloud provider is accused of abusing its market dominance by making it difficult for consumers to use alternative means of storing photos, videos and other data beyond that of its own service, according to lawyers at Willkie Farr & Gallagher, who filed the suit London's Competition Appeal Tribunal on behalf of Which? Ltd. 

Britain's opt-out class-action regime has become an increasingly popular route for consumers to try and hold a handful of globally dominant firms to account. Tech companies — Apple included — in particular have been targeted for abusing their dominant position to overcharge customers. None of the recent filings have made it to a full trial. 

Apple raised the price of iCloud storage for UK consumers by between 20 percent and 29 percent across its storage tiers in 2023 - fees which customers have no choice but to pay once they surpass the free storage limit of 5GB, according to the claimants.  

Which? estimates that the damages in the case could reach as high as £3 billion ($3.8 billion or roughly Rs. 32,081 crore) should the 40 million British customers who use Apple storage products take part in the litigation. A London judge will have to approve the class action before the real scope can be decided. 

“Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for data storage,” Apple said. “We reject any suggestion that our iCloud practices are anticompetitive and will vigorously defend against any legal claim otherwise.”

© 2024 Bloomberg L.P.

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