UK Class Action Alleges Apple Monopolizes Data Storage, May Face Billions in Damages (Claims Journal)

UK Class Action Alleges Apple Monopolizes Data Storage, May Face Billions in Damages

Thursday, November 14th, 2024 Legislation & Regulation Litigation Risk Management Technology

A UK consumer group has launched a class action against Apple, claiming the tech company has misused its market power to limit consumers’ data storage options. Filed with London’s Competition Appeal Tribunal by legal representatives at Willkie Farr & Gallagher, the lawsuit contends that Apple’s iCloud service practices restrict consumers from using alternative data storage solutions. According to the plaintiffs, Apple’s dominant position in the data storage market forces customers to pay for iCloud once they exceed the free 5GB limit, creating a de facto monopoly over users’ storage choices.

The class action, led by consumer advocacy organization Which?, suggests that Apple’s recent price hikes of up to 29% on iCloud plans exacerbate the issue, potentially costing British consumers billions in inflated fees. With damages estimated at £3 billion ($3.8 billion), the case could impact approximately 40 million users across the UK if approved by a London judge.

Apple, however, denies any allegations of anticompetitive practices, asserting that users can freely choose from various third-party storage providers. As consumer groups increasingly pursue legal action against major tech firms under Britain’s class-action regime, the case underscores the growing demand for accountability and fair pricing in digital services.


External References & Further Reading
https://www.claimsjournal.com/news/national/2024/11/14/327403.htm
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