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Millions of iCloud users could be eligible to receive payment from Apple's $3,000,000,000 lawsuit payout

Home> Apple

Published 10:25 14 Nov 2024 GMT

Millions of iCloud users could be eligible to receive payment from Apple's $3,000,000,000 lawsuit payout

Consumers will automatically be entered into the lawsuit

Tom Chapman

Tom Chapman

Although Apple is one of the biggest tech companies around, we doubt it wants to flush billions of dollars down the toilet.

The tech giant is looking pretty healthy thanks to the release of the iPhone 16 range and embracing the future of AI with its Apple Intelligence rollout, but the ghosts of the past could be knocking at the door.

Apple is currently embroiled in a multi-billion lawsuit amidst accusations it's been ripping customers off with iCloud charges - So, you could be owed a payout.

In the United Kingdom, consumer group Which? has filed a $3.8 billion action against the iPhone maker.

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Apple is accused of 'aggressively' marketing iCloud (Apple)
Apple is accused of 'aggressively' marketing iCloud (Apple)

Which? alleges that Apple locked customers into using iCloud and has charged them exorbitant prices for the privilege. It's suspected that there are around 40 million Apple customers in the UK that have used iCloud over the past nine years, with Apple accused of using its place in the market to gain an 'unfair advantage.'

Which? explains that consumers are encouraged to sign up to iCloud to store data like photos and videos, while not being offered alternatives from a third-party provider. Because you then have to pay once it goes over the 5GB limit (which is easy to do), it traps customers into paying to keep their precious memories.

Similar accusations were made earlier in 2024 in the USA, where Apple responded by saying there are 'many alternatives' in the cloud storage space.

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Which? points to Apple increasing its iCloud prices by up to 29% in 2023 alone, with the consumer group now seeking damages for customers who've used iCloud since October 1, 2015. UK consumers will automatically be part of the claim unless they tell Which? they want to opt-out, but if successful, there could be an average compensation of $89 per customer.

Which? chief executive Anabel Hoult explained: "By bringing this claim, Which? is showing big corporations like Apple that they cannot rip off UK consumers without facing repercussions.

The tech giant firmly denies the accusations (Apple)
The tech giant firmly denies the accusations (Apple)

"Taking this legal action means we can help consumers to get the redress that they are owed, deter similar behaviour in the future and create a better, more competitive market."

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As reported by the BBC, Apple doesn't look like it's willing to bend to this one. In a statement denying the charges, Apple said: "We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise."

This comes after Microsoft was previously called out for 'aggressively' packaging its OneDrive storage with Windows products, and if Which? gets its way, Apple could be forced to open up iOS to a variety of storage options.

With Apple CEO Tim Cook already having to relent and open up to different browser choices as part of Europe's Digital Markets Act, the company's stronghold could be loosening.

Featured Image Credit: CFOTO / Contributor / SOPA Images / Contributor / Getty
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