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Apple sued over iCloud 'coercion' - demanding $3.75 billion

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Apple sued over iCloud 'coercion' - demanding $3.75 billion
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A lawsuit filed by a UK consumer protection organization claims that Apple has violated antitrust laws by effectively "forcing" 40 million customers to use its iCloud cloud service.

The organization notes that Apple has provided iCloud with preferential status, charging inflated fees that hinder the use of alternative providers.

“We believe that Apple owes its customers nearly £3 billion ($3.75 billion) for imposing its iCloud services on them and stifling competition from other offerings,” the organization stated.

Apple does not allow customers to back up their data through third-party storage providers. Currently, owners of the company’s devices receive 5 GB of free iCloud storage (a limit that has not changed since 2011), while additional storage comes at a cost: for example, 50 GB is priced at $0.99/month.

Apple is facing a similar lawsuit from the Department of Justice in the US. In August, the company asked a federal judge to dismiss the case, calling the iPhone “one of the most innovative and consumer-friendly products ever created.”

“Our users do not need to use iCloud, and many rely on a wide range of third-party alternatives for data storage,” Apple stated. “We reject any suggestions that our iCloud practices are anti-competitive, and we will vigorously defend against any legal claims to the contrary.”

Source: The Verge

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