Apple Hit With $3.8B Legal Claim For Allegedly Breaking UK Competition Law With iCloud Service

Consumer group Which? has filed a £3 billion ($3.81 billion) legal claim against Apple Inc. AAPL, accusing the tech giant of breaching UK competition law through its iCloud service.

What Happened: The claim, which could result in compensation for around 40 million UK iPhone and iPad users, alleges that Apple has abused its market dominance by steering customers towards its integrated iCloud service without clearly presenting alternative cloud storage options.

According to Which?, Apple users have been “locked in” to iCloud, with limited ability to use third-party storage providers, thus driving up costs. Apple's service offers only 5GB of free storage, after which users are urged to pay for additional space, with prices ranging from £0.99 to £54.99 per month.

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The legal action argues that consumers were not adequately informed about alternatives, which could have provided cheaper options.

The claim, being brought on an opt-in and opt-out basis, seeks compensation for users who have used iCloud services since October 2015. If successful, consumers could receive an estimated £70 payout.

Which? is calling for a settlement that would allow users more choice and for Apple to refund overcharged consumers. The Competition Appeal Tribunal will soon decide whether the case can proceed.

See Also: Amazon’s Secret Fertility Tracker Project Launched Under Jeff Bezos Reportedly Halted Amid CEO Andy Jassy’s Cost-Cutting Drive

Why It Matters: This lawsuit adds to the mounting legal challenges faced by major tech companies. It comes at a time when Apple is also under scrutiny by the European Union for its geo-blocking practices on the App Store and other media services.

Despite these legal challenges, Apple continues to innovate and expand its product range. The company is reportedly planning to launch a smart home IP camera in 2026, with an eye on tens of millions in annual shipments.

Additionally, Apple has recently updated its messaging system to accurately display Android user reactions on iOS, marking a significant step forward in iPhone–Android messaging.

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Photo courtesy: Apple

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.