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.
Apple's iPhone 16 released in the UAE – in pictures
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Unlike previous years, only those with online reservations were allowed to queue up outside the Apple store in Dubai Mall. Ali Al Shouk / The National -
Many travelled from other parts of the region to be among the first to get their hands on the latest iPhone. Ali Al Shouk / The National -
Apple introduced the iPhone 16, 16 Plus, 16 Pro and 16 Pro Max at an unveiling event this month. Ali Al Shouk / The National -
Indian expat Sayed Fawas has made a tradition of changing his iPhone at every launch. Ali Al Shouk / The National -
Several Apple fans were seen waiting for their turn at Yas Mall in Abu Dhabi. The National -
The UAE is among the first countries where the new devices are available. The National -
'A reservation is currently required to purchase iPhone 16 and iPhone 16 Pro in store,' Apple informed on its website. The National
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.”
