Apple hit with a $3.75 bn antitrust lawsuit over iCloud storage

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Apple gets hit with a £3 billion (approximately $3.75 billion) lawsuit in the UK from a consumer advocacy group “Which?” stating that the company is “forcing” customers to use its iCloud service. 

The group claims Apple used its dominant position in the mobile ecosystem to promote iCloud while making it difficult for users to choose alternative cloud storage providers, thereby limiting competition.

A UK consumer group believes Apple is overcharging for iCloud storage

The lawsuit, representing around 40 million Apple users in the UK, alleges that Apple unfairly “locked in” customers to its iCloud service since October 2015, resulting in overcharges for subscriptions. 

Which? argues that Apple’s dominance in the iOS operating system and cloud storage market enabled the company to exploit consumers by offering preferential treatment to iCloud and failing to provide sufficient flexibility for third-party cloud backups. 

Users currently receive 5GB of free iCloud storage—unchanged since its 2011 launch—and must pay monthly fees for additional space. 

While Apple lets iPhone users manually back up their devices using a computer, Which? contends that the process is cumbersome compared to iCloud.

The group aims to secure compensation for affected customers and prevent anti-competitive behavior.

They describe iCloud’s limited alternatives and the absence of third-party integration as evidence of Apple’s monopolistic practices, which allegedly created an unfair advantage in the cloud storage market.

Apple has denied the claims, asserting that users are not required to use iCloud and have access to various third-party storage options.

In a statement to Forbes, Apple said that its “iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise.”

It’s not the first time Apple has faced a lawsuit over iCloud storage. The US Department of Justice has also accused Apple of monopolizing the cloud storage market. 

Apple has countered such allegations, emphasizing its “innovative and consumer-friendly approach,” and recently sought the dismissal of a similar case in federal court.

What do you think about this lawsuit against Apple? Do you think it’s unfair, or is it warranted? Hit us up in the comments below, or via our Twitter or Facebook.