Apple is facing a £3 billion payout if consumer group Which? wins its legal claim against the tech giant, accusing it of effectively locking 40 million British customers into its iCloud service and charging them 69 rip off prices. The regulator has announced a wider investigation into cloud services in the UK.
Investigation into Cloud Services
The regulator has announced a wider investigation into cloud services in the UK, which could have implications for Apple and other companies in the industry.
Timeline of Events
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2015: Apple begins charging customers for using its iCloud service.
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2024: Which? launches a legal claim against Apple, accusing it of effectively locking 40 million British customers into its iCloud service and charging them “rip off prices.”
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2024: The regulator announces a wider investigation into cloud services in the UK.
Quotes from Experts
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“By bringing this claim, Which? is showing big corporations like Apple that they cannot rip off UK consumers without facing repercussions.” – Anabel Hoult, chief executive of Which?
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“Although most of these claims are in their infancy and take a long time to resolve, there will be more decisions coming out over the next couple of years and there will be settlements – these will start to affect the tech giants’ businesses.” – Toby Starr from legal firm Humphries Kerstetter
Impact
The legal action could result in a £3bn payout if successful, with the average customer getting around £70. This is part of a growing trend of large class actions against big tech firms, which have operated without sufficient constraint.
Quotes
- “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.” – Anabel Hoult, chief executive of Which?
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Consumer group Which? has launched a legal claim against Apple, accusing it of effectively locking 40 million British customers into its iCloud service and charging them “rip off prices.” The claim could result in a £3 billion payout if successful.
Background
Consumer group Which? has launched a legal claim against Apple, accusing it of effectively locking 40 million British customers into its iCloud service and charging them “rip off prices.”
Allegations Against Apple
Which? alleges that Apple’s practices are anti-competitive and that the company has been overcharging customers for using its iCloud service. The consumer group claims that Apple has been effectively locking people into its services, and then overcharging them.
Response from Apple
Apple has rejected the suggestion that its practices are anti-competitive, stating that users are not required to use iCloud and that many customers rely on third-party alternatives. The company also insisted that it “works hard to make data transfer as easy as possible.”
Potential Consequences for Apple
If successful, the legal claim could result in a £3 billion payout, with the average customer getting around £70. This could have significant consequences for Apple’s business and reputation.
Growing Trend of Large Class Actions Against Big Tech
The case against Apple is part of a growing trend of large class actions against big tech companies. Other companies facing similar claims include Facebook, Google, gaming giant Steam, and the UK’s leading mobile providers.
Investigation into Cloud Services
Apple, the tech giant, is facing a legal claim accusing it of effectively locking 40 million British customers into its iCloud service and charging them “rip off prices”. The consumer group Which? has launched the legal action, which could result in a £3bn payout if it is successful.
Investigation
The Competition Appeal Tribunal (CAT) in the UK has announced a wider investigation into cloud services. This comes as part of a growing tide of large class actions against big tech firms, which have operated without sufficient constraint.
Claims Against Apple
Which? claims that Apple has been effectively locking people into its services and then overcharging them for storage space. The prices for iCloud storage range from £0.99 a month for 50GB to £54.99 a month for 12TB. Apple does not allow rival storage services full access to its products, citing security reasons.
Reactions
Apple has strongly denied the accusations, stating that it rejects any suggestion that its iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise. The company also claims that users are not required to use iCloud and that many customers rely on third-party alternatives.
