Apple hit with £3 billion lawsuit over 'rip-off prices' for trapping 40 million iCloud users

Apple is facing a legal claim alleging it has effectively locked 40 million British customers into its iCloud service and is charging them "rip off prices".

Consumer group Which? says its legal action could lead to a £3bn payout if successful, with each customer potentially receiving about £70.

Apple has refuted claims of anti-competitive practices, asserting that users are not obligated to use iCloud. Apple notes that many customers opt for third-party alternatives and insists it “works hard to make data transfer as easy as possible.”

This is part of a “growing wave of large class actions against big tech,” which have “operated without adequate restraint,” Toby Starr from legal firm Humphries Kerstetter told the BBC.

Facebook, Google, gaming company Steam, and major UK mobile providers are among other firms facing legal claims at the Competition Appeal Tribunal.

“Although most of these cases are still early-stage and take time to resolve, more decisions and settlements in the coming years will start to impact tech giants’ operations,” Starr added.

Apple product users receive a small amount of free digital storage and are then encouraged to pay for iCloud storage to back up photos, videos, messages, and other content on their devices.

Prices for storage range from £0.99 per month for 50GB to £54.99 per month for 12TB.

Apple restricts rival storage services’ full access to its products, which it claims is for security purposes, though this also contributes to its substantial revenue.

Which? alleges that since 2015, Apple has effectively locked customers into its services and overcharged them.

"By bringing this claim, Which? is showing big corporations like Apple that they cannot exploit UK consumers without facing consequences," said Anabel Hoult, the group’s chief executive.

"This action seeks to help consumers receive fair redress, discourage similar conduct in the future, and foster a more competitive market."

Apple has firmly denied the accusations from Which?, stating, "We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise."