Legal Action Against Apple by Which?

LONDON (Reuters) – British consumer group Which? will launch legal action against Apple (NASDAQ:AAPL) on Thursday, alleging that the tech giant breached competition law by effectively locking millions of its customers into its iCloud service.

Which? claims that Apple encouraged users to sign up for iCloud to store photos, videos, and other data while making it challenging to use alternative providers.

Customers are required to pay for the service if their data exceeds the free 5GB limit. This lack of competition has allegedly led to consumers being overcharged, amounting to as much as 13.36 pounds ($16.98) this year through their monthly iCloud subscriptions.

In response, Apple stated that customers are not obligated to use iCloud and many have opted for third-party alternatives. Apple refuted any suggestions that its iCloud practices are anticompetitive and vowed to vigorously defend itself against such claims.

Approximately 40 million Apple customers in Britain who have used iCloud services in the past nine years could be eligible for compensation if the claim proves successful. Which? estimates that Apple customers are owed nearly 3 billion pounds due to the forced use of iCloud services.

Anabel Hoult, Chief Executive of Which?, stated, "Taking this legal action means we can help consumers to get the redress that they are owed, deter similar behavior in the future, and create a better, more competitive market."

Which? plans to file the claim with the Competition Appeal Tribunal.

($1 = 0.7870 pounds)