iCloud class action lawsuit: Apple seeks to avoid paying billions in the UK
Apple may have to compensate British consumers for iCloud prices. If it weren't for a litigation funder, the company is now taking action against it.
iCloud: Trouble for Apple in Great Britain.
(Image: Apple)
The British consumer organization Which? Had sued Apple because the company allegedly forced 40 million British customers into paid iCloud+ services. As part of a large class action lawsuit, the iPhone company is now supposed to pay back 3 billion British pounds to its customers, as the purchase of iCloud+ represents a “compulsion for users.” It lacks alternatives from other providers that offer the same range of functions. Apple rejects the allegations as untenable and has involved the so-called Competition Appeal Tribunal. There, the manufacturer's lawyers now want to prove that the lawsuit itself is on shaky ground.
Fear for money
The trick of Apple's lawyers: They assume that the litigation funder involved by Which? Does not have the means to pursue the lawsuit or to make the potential payouts to the class action plaintiffs. The company, named Litigation Capital Management (LCM), had to admit economic problems. The stock has lost almost 99 percent over the past twelve months, and LCM is currently said to be worth only around 12 million pounds.
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Apple's lawyers doubt that LCM is capable of continuing the process. The company apparently fears having to pay money that would then be lost in a potential insolvency proceeding of the litigation funder. Whether the Competition Appeal Tribunal will see it that way is still unclear. A corresponding decision could take months.
Antitrust lawsuit
The organization Which? believes that Apple is violating British antitrust law with its storage service. Users of iPhones and iPads should therefore be compensated if they have subscribed to iCloud+. The lawsuit is formulated in such a way that, in the event of a corresponding court decision, all British users will automatically receive compensation unless they object. Each user would receive around 70 British pounds in case of success.
Apple offers users only 5 GB of free iCloud storage—far too little by today's standards. For this reason, users often purchase iCloud+ as an add-on. In Great Britain, you pay between 0.99 and 54.99 pounds per month for this (50 GB to 12 TB).
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