Millions of iPhone users could be owed £70 payout from Apple over claims of ‘rip off’ prices

MILLIONS of Apple iPhone and iPad users could be owed a £70 payout after a consumer group accused the tech giant of ripping customers off.

Which? claims the computer and electronics company is breaching competition law by forcing people to use its iCloud services.

Apple iCloud lets you securely store your photos, files, notes, passwords and other data.

It also acts as a backup in case you lose your phone or it is stolen.

But Which? says Apple has encouraged users to sign up to iCloud while making it difficult to use other products at the same time.

The consumer group claims Apple doesn’t let customers store or back up all of their phone’s data with a third-party provider, and they have to pay when the amount of data stored breach a 5GB limit.

Which? also says Apple customers are being overcharged for iCloud subscriptions.

It said this is partly because of the tech giant’s dominance of the market, meaning it is difficult for alternative services to gain traction and offer competition.

The consumer group is seeking damages for customers who have obtained iCloud services since October 1, 2015.

It estimates this is around 40million people, and that individual customers could be owed an average of £70.

However, you could receive more or less than this based on how long you have been using the iCloud service.

Which? chief executive Anabel Hoult said: “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.

“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.”

A spokesperson for Apple UK said: “Apple believes in providing our customers with choices.

“Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for data storage.

“In addition, we work hard to make data transfer as easy as possible – whether its to iCloud or another service.

“We reject any suggestion that our iCloud practices are anticompetitive and will vigorously defend against any legal claim otherwise.”

What happens next?

Which? is urging Apple to settle the claim without the need to take the case to tribunal.

The consumer group is asking that Apple offers iCloud customers their money back and allows customers “real choice” of cloud provider.

If this doesn’t happen, Which? will ask the Competition Appeal Tribunal’s permission for the claim to proceed – what’s known as a “certification”.

A hearing would then be set for Which? to put its case forward.

There’s no guarantee that compensation will be issued to iPhone and iPad users – only if the case is won at tribunal.

You can register your claim and see if you could be eligible for compensation via cloudclaim.co.uk.

The Which? legal claim is not the first to be launched against global companies in recent years.

In June, the British Independent Retailers Association (BIRA) accused Amazon UK of illegally using data belonging to competing sellers to market rival products for a cheaper price.

The group of retailers, represented by law firm Willkie Farr and Gallagher, said damages could be worth £1.1billion.

Last July, a collective action was launched against Amazon and Apple UK, claiming the tech giants made a secret pact in October 2018 to restrict sales of Apple products by independent merchants on Amazon’s website.

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