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Apple sued over iCloud use - with potential payout for 40 million UK customers
AppleApple(US:AAPL) Sky News·2024-11-14 04:04

Lawsuit Overview - Consumer rights group Which? is suing Apple for £3 billion over alleged anti-competitive practices related to iCloud storage [1] - The lawsuit claims Apple breached UK competition law by giving iCloud preferential treatment and stifling competition, potentially affecting 40 million UK customers [1][2] - Apple rejects the claims and states it will vigorously defend itself, emphasizing customer choice and data transfer ease [4][5] Allegations Against Apple - Apple is accused of making it difficult for users to use alternative cloud storage providers, effectively "trapping" customers into using iCloud [2] - The lawsuit alleges Apple overcharged customers by limiting competition and not allowing full phone data backup with third-party providers [1][2] - Once users exceed the free 5GB iCloud limit, they are required to pay for additional storage, which the lawsuit claims is anti-competitive [3] Potential Outcomes - If successful, UK Apple customers who used iCloud since October 2015 could receive an average payout of £70 per person [6][7] - The lawsuit could set a precedent for similar cases, as Apple is also facing antitrust lawsuits in the US over its iPhone ecosystem [7][8] Broader Industry Context - This lawsuit is part of a larger trend of legal challenges against big tech companies like Apple, Google, and Samsung over anti-competitive practices [8][9] - Google has faced similar antitrust cases, including a ruling that it holds an illegal monopoly over the internet search market and its Android app store [9][10] - Advocacy groups emphasize the need for government intervention to hold corporations accountable and enforce competition laws [10][12]