UK group wants $4 billion payout for iCloud users

Posted:
in iCloud edited November 14

The UK's "Which?" consumer group and publication is to sue Apple over what it claims is the company's anti-competitive way of locking users into paying for iCloud storage.

Cartoon character with glasses and a beanie making a peace sign, surrounded by colorful app icons including mail, photos, and graphs.
Apple's iCloud promo -- image credit: Apple



It's not the first lawsuit against Apple over iCloud storage, and the company's free 5G has certainly been aggravating for many years. Now Which? has announced what it describes as a landmark legal claim over Apple's "rip-off prices" for iCloud.

"We believe Apple customers are owed nearly 3 billion pounds [$3.8 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? CEO, in a statement. "By bringing this claim, Which? is showing big corporations like Apple that they cannot rip off UK consumers without facing repercussions."

The argument is that "iOS has a monopoly" and that Apple has used that "dominance to gain an unfair advantage in related markets, like the cloud storage market." Specifically, Apple is accused of making it difficult to use alternative suppliers.

Which?, calling itself "the consumer champion," says it has filed a complaint with the UK's Competition Appeal Tribunal. It claims that around "40 million Apple customers in the UK who have obtained iCloud services over the last nine years could be entitled to a payout."

The reason for the nine-year period is presumably that in 2015, Apple revamped its iCloud storage plans. It has, though changed and added to the iCloud storage tiers since then.

According to Reuters, Apple has responded that the claims by Which? are false. "We reject any suggestion that our iCloud practices are anticompetitive and will vigorously defend against any legal claim otherwise," said the company in a statement.

It's now 13 years since Apple first provided 5GB of iCloud storage space free to every user. What may have seemed ample in 2011 has long since been seen as miserly, and especially so since it is 5GB per user, not per device.

Apple uses iCloud for syncing and if the Which? argument was that 5GB is simply too small, that would seem fair comment. It is sufficiently inadequate that reportedly almost two thirds of US Apple users pay for extra iCloud storage.

It is also correct that using alternative suppliers such as Google adds at least some setup steps. Apple has made iCloud the simplest to use with its devices.

However, it is true that users do not have to use iCloud "for storage of photos, videos and other data." There are alternatives and that may be sufficient to mean the case does not proceed.

What happens next

Which?

has filed its complaint with the Competition Appeal Tribunal, which must now decide whether it has merit. If the tribunal approves the complaint, the next step will be for it to give permission for the consumer group and publication to proceed to the UK's equivalent of a class action lawsuit.

If that happens, the suit will then proceed on behalf of all eligible UK consumers. Those consumers will be opted in to the suit, unless they specifically request not to be.

As yet, the Competition Appeal Tribunal has not listed the complaint on its register of cases. There is no published schedule then, for when a decision can be expected.



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Comments

  • Reply 1 of 39
    If people want everything for free and are too stupid to figure out how to go about getting it for free then yes, they should pay the price.
    jeffharrisssfe11iOS_Guy80Afarstarwilliamlondonwatto_cobra
  • Reply 2 of 39
    You don’t need to use iCloud for anything if you choose not to.

    i only started using it because syncing Contacts, Calendars and Bookmarks on all my devices (Mac, iPhone, iPad) was dodgy. 
    Even now contacts and calendars aren’t 100%. My phone has 4 copies of every contact!

    I don’t use iCloud for anything else.

    So, these clowns think they’ll get a billion dollar payday from Apple to cover their stupidity?
    Good luck with that.
    iOS_Guy80AfarstarStrangeDayswatto_cobra
  • Reply 3 of 39
    I agree with the UK group. Apple’s pricing versus its offer for storage is obscene and clearly a way to gouge customers month after month.

    To say you don’t *have* to use iCloud is disingenuous. The truth is that you have to work to avoid using iCloud. And even when you set it up to avoid it, OSes revert to the default saving to iCloud after each major upgrade.

    It’s one of the reasons why I dislike the current Apple.
    sphericwilliamlondon
  • Reply 4 of 39
    I agree with the UK group. Apple’s pricing versus its offer for storage is obscene and clearly a way to gouge customers month after month.

    To say you don’t *have* to use iCloud is disingenuous. The truth is that you have to work to avoid using iCloud. And even when you set it up to avoid it, OSes revert to the default saving to iCloud after each major upgrade.

    It’s one of the reasons why I dislike the current Apple.
    You can always switch over to the android platform.
    omasoumike19secondkox2AfarstarStrangeDaysmacxpressdarelrexmastericwilliamlondonwatto_cobra
  • Reply 5 of 39
    omasouomasou Posts: 640member
    I agree with the UK group. Apple’s pricing versus its offer for storage is obscene and clearly a way to gouge customers month after month.

    To say you don’t *have* to use iCloud is disingenuous. The truth is that you have to work to avoid using iCloud. And even when you set it up to avoid it, OSes revert to the default saving to iCloud after each major upgrade.

    It’s one of the reasons why I dislike the current Apple.

    100% BS. Dropbox, MS OneDrive, Google Drive, etc. still exist. Learn how to use them or as the other poster said, switch platforms if iOS is too onerous and costly for you.

    The iPhone worked before iCloud and it still works w/o iCloud.
    mike1AfarstarlotonesStrangeDaysAlex1Nwilliamlondonwatto_cobra
  • Reply 6 of 39
    I doubt this has legs, but I hope Apple up the storage level of the free tier to head it off anyway, the lack of increase over so many years is as much of an insult to their customers as is their RAM and storage upgrade pricing.
    9secondkox2appleinsideruserwilliamlondonwatto_cobra
  • Reply 7 of 39
    danoxdanox Posts: 3,417member
    I agree with the UK group. Apple’s pricing versus its offer for storage is obscene and clearly a way to gouge customers month after month.

    To say you don’t *have* to use iCloud is disingenuous. The truth is that you have to work to avoid using iCloud. And even when you set it up to avoid it, OSes revert to the default saving to iCloud after each major upgrade.

    It’s one of the reasons why I dislike the current Apple.
    Use something else Google and Meta are available and are waiting just for you….. Apple user who doesn’t use iCloud.
    edited November 14 mike1StrangeDayswilliamlondonwatto_cobra
  • Reply 8 of 39
    DAalsethDAalseth Posts: 3,050member
    How is this different than Microsoft tying their whole ecosystem to OneDrive. If you’re onOffice365, like I am for work, it’s damn hard to NOT have everything save to OneDrive. It’s the default most of the time and is a PITA if like us cloud storage is not allowed for security and privacy reasons. 
    decoderringAfarstarlotonesmattinozAlex1Nwilliamlondonwatto_cobra
  • Reply 9 of 39
    Apple charge 99 cents a month to upgrade from the default 5GB to 50GB. It's not a lot. But that's maybe the point when the default storage has remained at 5GB since 2011, whilst the actual cost of storage has dropped dramatically in the time. That 5GB has not maintained the pace of their technological development resulting in increased image and video resolution and file sizes. I usually defend Apple in most things, but the second largest company in the world going to the effort to collect a measly 99 cents per month feels like 'penny-pinching'.
    decoderringmuthuk_vanalingamAlex1Nwatto_cobra
  • Reply 10 of 39
    Believe me — Apple fanboys are a real reason to switch platforms…
    nubus9secondkox2sphericwilliamlondon
  • Reply 11 of 39
    Are things that different in the U.K.?  I use Google Drive, OneDrive, and Dropbox on my phone and iPad all the time.  That hardly seems monopolistic to me.
    9secondkox2AfarstarronnAlex1Nwatto_cobra
  • Reply 12 of 39
    More of the Eu Style drivel nonsense. 

    People pay for what they want. They chose iCloud instead of Google drive, one drive, Dropbox, etc. it’s their choice. They chose a nicely integrated solution. It’s not like alternatives aren’t available. 

    Frivolous. Glad the days of Apple having to do nothing but take it from hostile entities are nearly over. 
    edited November 14 StrangeDayswatto_cobra
  • Reply 13 of 39
    I pay a subscription to Which, and this law suit means I will not renew it. The claim is totally baseless and frankly it’s also pathetic. Hopefully it will get thrown out at the first hurdle. 
    Alex1Nwatto_cobra
  • Reply 14 of 39
    This isn't tech-related, but legal. The negative check-off to avoid inclusion in the class action implies that millions of Apple device owners could be included in a suit in which they really have no interest (and are unlikely to profit by). For what it's worth, this appears to be a (rare?) instance in which the US legal system makes more sense: only those with a real or imagined grievance participate in a class action by responding in the positive to the legal firm's offer.

    On a more relevant matter: I've never done an iCloud backup of anything. That's what cables and the hard/SSD drive storage on your Mac (or, even, *gasp*, Windows machine) are for. And if you just happen to back up your computer to, say, a Time Machine drive, a Carbon Copy Cloner drive, and/or a network backup service such as Backblaze, you'd be belted and braced.
    StrangeDaysAlex1Nwatto_cobra
  • Reply 15 of 39
    sphericspheric Posts: 2,703member
    omasou said:
    I agree with the UK group. Apple’s pricing versus its offer for storage is obscene and clearly a way to gouge customers month after month.

    To say you don’t *have* to use iCloud is disingenuous. The truth is that you have to work to avoid using iCloud. And even when you set it up to avoid it, OSes revert to the default saving to iCloud after each major upgrade.

    It’s one of the reasons why I dislike the current Apple.

    100% BS. Dropbox, MS OneDrive, Google Drive, etc. still exist. Learn how to use them or as the other poster said, switch platforms if iOS is too onerous and costly for you.

    The iPhone worked before iCloud and it still works w/o iCloud.
    You didn’t read his comment. 
  • Reply 16 of 39
    sphericspheric Posts: 2,703member

    More of the Eu Style drivel nonsense. 

    People pay for what they want. They chose iCloud instead of Google drive, one drive, Dropbox, etc. it’s their choice. They chose a nicely integrated solution. It’s not like alternatives aren’t available. 

    Frivolous. Glad the days of Apple having to do nothing but take it from hostile entities are nearly over. 
    At least you called it „Eu Style“ as a saving grace (since the UK left). 

  • Reply 17 of 39
    Believe me — Apple fanboys are a real reason to switch platforms…

    I don’t believe you.
    edited November 14 appleinsideruserAlex1Nwilliamlondonwatto_cobra
  • Reply 18 of 39
    omasouomasou Posts: 640member
    spheric said:
    omasou said:
    I agree with the UK group. Apple’s pricing versus its offer for storage is obscene and clearly a way to gouge customers month after month.

    To say you don’t *have* to use iCloud is disingenuous. The truth is that you have to work to avoid using iCloud. And even when you set it up to avoid it, OSes revert to the default saving to iCloud after each major upgrade.

    It’s one of the reasons why I dislike the current Apple.

    100% BS. Dropbox, MS OneDrive, Google Drive, etc. still exist. Learn how to use them or as the other poster said, switch platforms if iOS is too onerous and costly for you.

    The iPhone worked before iCloud and it still works w/o iCloud.
    You didn’t read his comment. 
    They complained Apple charges too much for iCloud. Well then use a free tier on another platform or compare prices.

    EOD, Apple provide 5GB free and for a nominal fee 50GB. 5GB is more than enough to save preferences. 50GB more than enough to save important documents, etc.

    But if you want to save all of your high resolution photos and back up stupid iMessages loaded with mimes, twitch videos, etc. then learn to take lower resolution photos and clean up iMessage or shut up and pay up.

    It's not up to Apple to provide endless free storage to back up all the useless cr*p people refuse to curate.
    edited November 14 StrangeDaysAlex1Nwatto_cobra
  • Reply 19 of 39
    *staring at EU* “They smell some p****y, they want a piece of the action” (Snatch)
    watto_cobra
  • Reply 20 of 39
    sphericspheric Posts: 2,703member
    *staring at EU* “They smell some p****y, they want a piece of the action” (Snatch)
    What's the EU got to do with this?

    Are you in the wrong thread, or are you just stuck in an outrage loop from ten years ago?
    omasoumuthuk_vanalingamwilliamlondon
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