Apple faces $3.78 billion lawsuit over alleged iCloud practices impacting 40 million customers – Times of India

Apple is reportedly facing a $3.78 billion lawsuit in the UK. According to a Reuters report, consumer advocacy group Which? Said it will take legal action against Apple. The British consumer group alleges the iPhone maker of breaching competition law by effectively locking approximately 40 million UK customers into its iCloud service. As per the report, Which? claims that Apple encouraged users to sign up for iCloud to store photos, videos, and other data, while making it difficult to use other providers.

Apple inflated iCloud fees, Consumer group alleges

Apple users get 5GB of free iCloud storage to back up photos, messages, and other content. Once the limit is exceeded, they are required to pay for the service. In the UK, the prices for extra storage in the UK range from £0.99 a month for 50GB space to £54.99 a month for 12TB.
Which? Says that it leads to what it describes as inflated fees. It estimates that the lack of competition has resulted in consumers being overcharged by up to £13.36 ($16.98) this year through their monthly iCloud subscriptions.

Nearly 40mn Apple customers may become eligible for the compensation

If the claim succeeds, approximately 40 million Apple customers in the UK who have used iCloud services in the past nine years could be eligible for compensation. As per Which? estimates, Apple may be required to pay close to £3 billion ($3.78 billion) to its customers.

What Apple said

Responding to the lawsuit, Apple stated that its customers are not required to use iCloud and that many choose third-party alternatives. “We reject any suggestion that our iCloud practices are anticompetitive and will vigorously defend against any legal claim otherwise.”