Apple Faces $3.75 Billion Antitrust Lawsuit Over iCloud Storage Practices
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Apple Faces £3 Billion Lawsuit for Alleged iCloud Monopoly in the UK
In a significant legal development, Apple is confronted with a £3 billion (approximately $3.75 billion) lawsuit initiated by a UK consumer group, which claims that the tech giant violated competition laws by pressuring customers to exclusively use its iCloud service.
Consumer Group Accusations
According to a press release from the UK consumer watchdog Which?, Apple has been favoring its iCloud storage service, effectively guiding users towards its platform to store essential data such as photos and videos, while simultaneously making it challenging to utilize alternative storage providers.
Claims of Overcharging and Monopoly
"We believe that Apple customers are owed nearly £3 billion due to the company’s coercive practices regarding iCloud services that stifled competition," stated Which? in its announcement. The lawsuit asserts that Apple's monopoly over cloud storage allowed the company to impose inflated prices on users for iCloud subscriptions. The legal action aims to seek compensation for approximately 40 million Apple users in the UK who have been compelled to use the service since October 2015.
iCloud Storage Limitations
Apple users currently receive 5GB of free iCloud storage, which has remained unchanged since its inception in 2011. Those requiring additional storage must pay a monthly fee starting at 99p (around $0.99 in the US). While users can backup their devices by transferring data directly to a computer, Apple does not permit backups via third-party storage services.
Legal Context and Apple’s Response
Which? highlighted that iOS holds a monopoly over Apple’s operating systems, placing a duty on Apple to avoid exploiting its dominance in the cloud storage market. "This legal action aims to not only secure consumer redress but also to deter future anti-competitive behaviors while fostering a more competitive market," they remarked.
In the US, Apple is embroiled in similar legal battles, facing allegations from the Department of Justice regarding unlawful monopolization of the cloud storage market. Apple has responded by asking a federal judge to dismiss the US case, asserting that the iPhone represents one of the most innovative and user-focused products available today.
Stance on iCloud Practices
In defense of its practices, Apple stated, "Our users are not required to use iCloud, and many utilize a variety of third-party alternatives for data storage. We firmly reject any claims suggesting our iCloud operations are anti-competitive and will defend ourselves against such allegations vigorously."
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