Acting on behalf of UK consumers, Which? believes that Apple has breached UK competition law by failing to provide a choice of cloud storage providers, and steering customers towards its iCloud service by not clearly informing them of alternatives and how those could be used on an iOS device.
Here, we explain what this legal action is and what it means for UK consumers.
iCloud competition claim in a nutshell
Which? believes that Apple iPhone and iPad iOS users have had little choice but to use Apple’s own iCloud service, and therefore Apple can charge users more than if it had to compete with rival cloud storage services.
The legal claim is being brought on an ‘opt-out’ and ‘opt-in’ basis. This means that, if consumers are eligible and live in the UK, they will automatically be included in the claim unless they tell Which? that they do not want to be.
If consumers live abroad but are otherwise eligible, they need to tell Which? that they want to be included.
You can find out more about the claim, if you could be affected and due a payout, and details on how to opt out, by visiting the dedicated website -‘Locked in’ with higher prices
iCloud is an Apple-integrated data storage service, but Which? understands that, behind the scenes, iCloud uses and used cloud infrastructure from third-party operators (namely Google, Amazon and Microsoft) to store encrypted user data.
It is built into every Apple device and comes with 5GB of free data to store photos, notes, messages and other data. Once customers have filled their free 5GB of iCloud storage, they are invited to upgrade for additional storage at paid tiers (currently ranging from 99p to £54.99). But customers are unlikely to have factored in the need to pay for upgrades when they first began using cloud storage.
At the same time, users aren't offered any alternative cloud providers. And, even if they were, iPhone users are tied to iCloud because they cannot store or back up all of their phone’s data with a third-party provider, as Apple doesn't allow certain data to be stored other than on iCloud.
The convenience of being ‘locked-in’ to this service over time could come at a significant cost - in terms of price, quality and choice. With Apple being such a dominant player in the phone and tablet market, this behaviour also creates a barrier for any new cloud service providers.
With the ever-increasing volume of data that mobile and tablet users generate, consumers should be able to access competitive cloud storage alternatives on their devices.
Read more:What does the iCloud claim mean for consumers?
Which? is seeking damages for all affected consumers. So if you have obtained iCloud services on or after 1 October 2015, you may be entitled to compensation if the claim is successful.
Working alongside a team of external experts, Which? has estimated that Apple could owe UK consumers who have obtained iCloud services on or after 1 October 2015 an average payout of £70.
Which? is urging Apple to do the right thing and settle this claim without the need for litigation by offering consumers their money back and opening up iOS to allow users real choice of cloud provider.
What is a collective action?
Which?’s legal action could help millions of consumers get redress for Apple’s anticompetitive behaviour.
This is possible because of the opt-out collective action regime introduced by the Consumer Rights Act 2015.
Which? will have to get the Competition Appeal Tribunal's permission for the claim to proceed - this is known as ‘certification’. A hearing for this will be set in due course.
In the past, it has been near impossible for individual consumers to take on big companies like Apple, but the collective regime has allowed Which? to represent consumers where large numbers of people have been harmed by anticompetitive conduct.
This action is vital to obtain redress for consumers and to send a clear message to powerful companies like Apple: Which? is prepared to take action if they engage in harmful practices.
Register on the claim website for updates and to see if you could be eligible to claim compensation -source https://www.which.co.uk/news/article/which-files-3bn-legal-claim-against-apple-for-competition-law-breach-aj8DE0j83Q41