Apple is facing a British class action over data storage allegations
Apple Inc. is facing a lawsuit from a British consumer group over allegations that its monopoly on data storage violates competition law, in a new class action that could ultimately cost the tech giant billions.
The iCloud provider is accused of abusing its market dominance by making it difficult for consumers to use alternative ways to store photos, videos and data other than that of its own service, according to attorneys at Willkie Farr & Gallagher, who filed the lawsuit against London’s Competition. Appeals Board on behalf of Which? Ltd.
The UK’s opt-out class action regime has become an increasingly popular route for consumers to try to hold a handful of globally dominant companies to account. Technology companies – including Apple – have been particularly targeted as they abuse their dominant position to overcharge customers. None of the recent cases have made it to a full trial.
Apple will increase the price of iCloud storage for UK consumers by between 20 and 29 percent across its storage tiers in 2023 – costs that customers will have no choice but to pay once they exceed the 5GB free storage limit, the plaintiffs said.
Which one? estimates that damages in the case could reach £3 billion ($3.8 billion or roughly Rs. 32,081 crore) if the 40 million British customers using Apple storage products were to join the lawsuit. A judge in London will have to approve the class action before the actual size can be decided.
“Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for data storage,” Apple said. “We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim to the contrary.”
© 2024 BloombergLP
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
