Consumer rights group Which? has launched a £3 billion legal case against Apple, claiming the tech giant breached competition law by forcing millions to use its iCloud service at ‘rip-off’ prices.

If successful the case could lead to 40 million Apple customers in the UK being entitled to a payout, around £70 per person.

Which? said it was making the move to ‘change the behaviour’ of big tech companies like Apple, claiming they use market dominance as a way to engage in anti-competitive practices that drive up prices for consumers.

More specifically, the landmark legal action, already filed with the Competition Appeal Tribunal, alleges that Apple breached UK competition law by giving preferential treatment to its own iCloud data storage service over other providers, essentially ‘trapping’ customers into using it.

According to Which?, that’s been achieved by implementing technical restrictions and practices that prevent users of iOS from storing key file types, as well as unfair choice architecture, and preventing a switch to alternative cloud providers, allowing Apple t0 charge higher fees for iCloud services.  

Apple has strongly denied the accusation, saying that it works hard to provide its customers with choice, and rejected the idea that they might be tied to using iCloud. 

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

Apple, currently sitting at a market cap of $3.4 trillion (£2.68 trillion), charges customers anything from 99p to £54.99 a month for data storage once their photos, videos, messages and other data surpasses the free 5GB limit. 

Which? claims Apple has overcharged users for these subscriptions, and makes it intentionally difficult to switch to alternative providers, with Apple not allowing customers using its devices to store or back-up all of their phone’s data with a third-party.

The consumer champion says that the resulting lack of competition has led to customers being overcharged each year, with Apple raising the price of iCloud for UK consumers by between 20% and 29% across its storage tiers in 2023 alone.

“We believe Apple customers are owed nearly £3 billion as a result of the tech giant forcing its iCloud services on customers and cutting off competition from rival services,” said Anabel Hoult, Which? chief executive.

“By bringing this claim, Which? is showing big corporations like Apple that they cannot rip off UK consumers without facing repercussions. 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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This isn’t the only legal battle that Apple is currently facing. The US Department of Justice, along with sixteen states, is suing the iPhone maker for allegedly scheming to illegally monopolise the smartphone market by undermining apps, products, and services that would make users less reliant on their products, and lower costs for alternative developers.

Targeting big tech firms with anti-competitive regulations is becoming something of a trend, with Google facing similar antitrust issues in the US, where it faces the imminent threat of being broken up, as well as in the EU, with the company being fined billions by the European Commission for what it deemed were anti-competitive tactics.

Samsung, Microsoft, Amazon, and Steam have all faced some form of antitrust action this year, with it being confirmed just yesterday that Meta is set to face trial in the US over claims that it bought Instagram and WhatsApp to crush emerging competition in social media.