Apple Faces $3.8 Billion Lawsuit For Breaching Competition Law Affecting 40 Million Customers

The existence of startups and smaller companies ensures that large multinational corporations don’t take advantage of customers.

Imagine if there was only one company that sold smartphones. They would be able to price their products at any amount they wanted. If one smartphone was worth $100, there would be nothing standing in the way of the company to sell it for $1,000.

This is where smaller companies and startups come in with the much-required competition that helps ensure companies don’t exploit their customers.

Yet, in such cases, the bigger company could just acquire the smaller one by presenting them with an offer they just can’t refuse.

This is where regulatory agencies come into the picture. They ensure that fair trade practices are observed across industries and that the market enjoys healthy competition, to avoid customers being exploited.

However, this is exactly what UK consumer group Which? is accusing tech conglomerate Apple of doing in the region.

As per a press release published by Which? on their website, the group has launched a £3 billion ($3.8 billion) legal claim against Apple for breaching competitive laws.

The claim mentions that around 40 million Apple customers across the UK who used Apple’s iCloud services since 1st October 2015 are entitled to a payout, if the claim is successful. As per estimates, each customer could be owed an average of £70 ($88.5).

According to the group, Apple trapped and “locked-in” users by giving its iCloud storage service preferential treatment and making it difficult to use alternative providers. Essentially, this helped them build a monopoly, which allowed the company to overcharge customers for its services.

Currently, Apple users receive 5GB of free iCloud storage and must pay a monthly fee of 99p ($0.99) for additional storage. The amount of free storage hasn’t changed since the service was launched in 2015. However, Apple increased the price of iCloud by around 20% and 29% across its storage tiers in 2023 in the UK.

“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,” said, Anabel Hoult, Which? Chief Executive.

“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 behavior in the future and create a better, more competitive market.”


However, Apple doesn’t agree with this assessment.

In a statement provided to Computer Weekly, a spokesperson for Apple said, “Apple believes in providing our customers with choices.”

“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’s to iCloud or another service. We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise.”

On the other hand, in addition to the UK, Apple is also facing a lawsuit in the US by the Department of Justice, where the company is accused of monopolizing the cloud storage market.

What do you think about these accusations?

Let us know in the comments below!