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Apple accused of catching and stealing 40 million iCloud customers
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Apple accused of catching and stealing 40 million iCloud customers

Apple is facing legal action accusing it of effectively locking 40 million British customers out of its iCloud service and charging them “fraudulent prices”.

Consumer group Which? says the legal action – which it has launched – could lead to a £3bn payout if successful, the equivalent of £70 per customer.

Apple has rejected the suggestion that its practices are anti-competitive, saying users are not forced to use iCloud, many rely on third-party alternatives, and insisting it “works hard to make data transfer as easy as possible”.

It’s another example of the “increasing amount of large class actions against Big Tech” that “have operated without sufficient constraints”, Toby Starr of law firm Humphries Kerstetter told the BBC.

Facebook, Googlethe gambling giant Steam and Great Britain top mobile phone providers are among the others facing legal claims at the same court, the Competition Appeal Tribunal.

“While most of these claims are in their infancy and take a long time to settle, over the next few years there will be more decisions and settlements – these will begin to affect the businesses of the tech giants,” he said. Mr. Starr.

A price to pay

Users of Apple products get a small amount of digital storage for free – and then are encouraged to pay to use its iCloud service to back up photos, videos, messages, contacts and everything else that’s on their device.

Prices for this storage range from £0.99 per month for 50GB of space to £54.99 per month for 12TB.

Apple does not allow rival storage services full access to its products.

It is said to be for security reasons – but it also contributes to the company’s enormous revenues.

Which? says that over a nine-year period dating back to 2015, Apple effectively locked people out of its services — and then overcharged them.

“By this claim, which? it shows big corporations like Apple that they can’t steal from UK consumers without facing repercussions,” said the body’s chief executive, Anabel Hoult.

“Taking this legal action means we can help consumers get the compensation they’re owed, deter similar behavior in the future and create a better, more competitive market.”

Apple has strongly denied Which’s allegations.

“We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim,” it said in a statement.

“Very high value damages”

Although launched by Which?, the legal action is funded and pursued by international law firm Willkie Farr & Gallagher.

Which? said they will be paid fees as the case progresses, receiving additional payments if successful – but will not receive a percentage of any damages.

Alan Davis, of law firm Pinsent Masons, said it was very likely there would be more similar cases in the future.

“It is inevitable that new claims of this nature will continue to be brought, given the very large value of total damages and the role and incentive of litigation funders to support these claims that otherwise could not be brought without this financial support,” he said he. said the BBC.

He added that the absence of any infringement decisions under EU or UK competition law meant that the claimant would have to prove the market abuse it claimed actually took place.

However, he pointed out that the regulatory authority announced a broader investigations into cloud services in Great Britain.