Apple is challenged by a UK consumer organization over iCloud

The British consumer advocacy group, Which?, announced it would initiate legal proceedings against Apple (NASDAQ) on Thursday, accusing the company of violating competition laws by effectively tying millions of customers to its iCloud service.

According to Which?, Apple encourages users to register for iCloud to store their photos, videos, and other data, while making it challenging for customers to switch to other providers. Once users exceed the free 5GB storage limit, they are then required to pay for the service, the group stated.

Which? argued that this practice has stifled competition and resulted in consumers being overcharged, with some facing excess costs of up to 13.36 pounds ($16.98) this year for monthly iCloud subscriptions.

Apple, however, countered the claims by stating that customers are not obligated to use iCloud, noting that many users rely on third-party options. “We reject any allegations that our iCloud practices are anticompetitive and intend to vigorously defend ourselves against any such claims,” the company said.

Should the legal action succeed, up to 40 million Apple customers in the United Kingdom who have utilized iCloud services over the past nine years could be eligible for compensation, according to Which?.

Anabel Hoult, Chief Executive of Which?, emphasized that the organization believes Apple has unjustly cost customers nearly 3 billion pounds by pushing its iCloud services. "This legal action aims to secure redress for affected consumers, discourage such practices in the future, and foster a more competitive market," she explained.

Which? plans to file its claim with the Competition Appeal Tribunal.

 

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.