06:50 AM EST, 11/15/2024 (MT Newswires) -- (Updates with a statement and additional information from Apple ( AAPL ) in the fourth and fifth paragraphs.)
Apple ( AAPL ) is facing legal action in the UK seeking 3 billion British pounds ($3.16 billion) in damages for allegedly abusing its market dominance by failing to offer iPhone and iPad users alternative cloud storage providers, consumer group Which? said Thursday.
The group said it filed a claim with the UK Competition Appeal Tribunal, alleging that Apple ( AAPL ) broke competition rules by directing users to the company's data storage service iCloud which is integrated into iOS devices.
Apple ( AAPL ) users are "tied to iCloud because they cannot store or back up all of their phone's data with a third-party provider, as Apple ( AAPL ) doesn't allow certain data to be stored other than on iCloud," the group alleged.
"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 it's to iCloud or another service," Apple ( AAPL ) told MT Newswires in an emailed statement, denying allegations that its iCloud practices are anticompetitive.
Nearly 50% of its customers do not pay for an iCloud+ subscription, Apple ( AAPL ) said. The subscription's pricing is also in line with that of rival cloud storage services, Apple ( AAPL ) added.