British Consumer Association sues Apple over anti-competitive practices
Update, Nov. 14, 2024: This story, originally published Nov. 14, now includes a comment from a security professional regarding Apple iCloud security protections.
The Apple ecosystem has always been something of a contentious issue. It’s what attracts many users in the first place, with promises of ease of use and a secure environment in which to work and play, but it also locks them in once they are there. Take the use of iCloud, which Apple has said users are not required to use and it works to “make data transfer as easy as possible,” for users. With free storage on offer up to 5GB, anything more costs money depending on the amount of storage space required. Given that iCloud is used to store everything from documents to photos and video from an iPhone, for example, the basic 5GB is soon eaten up by the average iOS user. This is the basis of the legal action which could see Apple on the hook for $3.75 billion (£3 billion) in reparations.
The Anti-Competiton Lawsuit Against Apple
Which? claims that “Apple has breached UK competition law by giving its iCloud storage service preferential treatment, ‘trapping’ customers with Apple devices into using iCloud.“ The legal action, filed with the U.K. Competition Appeal Tribunal, is on behalf of 40 million Apple customers who have used iCloud across the past nine years. If successful, the lawsuit could see each user owed an average of $88 (£70) depending on their usage.
“We believe Apple customers are owed nearly £3 billion ($3.75 billion) as a result of the tech giant forcing its iCloud services on customers and cutting off competition from rival services,” Anabel Hoult, Which? chief executive, said.
Apple has responded by issuing the following statement: “Apple believes in providing our customers with choices,” the spokesperson said. “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. We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise.”
The Apple Security Defense
From a purely security-oriented point of view, the use of iCloud for secure data storage is something that is to be welcomed, even if that comes at a cost. Users would soon complain, after all, if photos and documents were compromised or lost. However, the issue of whether Apple “traps” users in the iCloud ecosystem and in doing so engages in anti-competitive practice is something that the courts will have to decide. Assuming, that is, it gets that far. “Which? is urging Apple to resolve this claim without the need for litigation,” a Which? Spokesperson said, “by offering consumers their money back and opening up iOS to allow users a real choice for cloud services.”
“Restricting access to third-party storage services can reinforce data security by allowing Apple to maintain end-to-end encryption, stringent access controls, and continuous monitoring, which may be more challenging to ensure across external platforms,” Graeme Stewart, head of public sector at Check Point Software, said. Apple’s requirement for multi-factor authentication and biometrics further strengthens user data protection by reducing the risk of unauthorized access. “However, this concentration of data in a single provider does create a risk,” Stewart added, “In the event of a breach or security compromise within Apple’s systems, users would have fewer secure alternatives for immediate backup, which could heighten their vulnerability.”
I strongly suspect that Apple will not take this route and will argue the security angle, while at the same time showing that third-party storage is available. The core of the argument, if you’ll excuse the pun, will be that Apple doesn’t allow third-parties to access its products in full. I have a feeling that, whatever the outcome, it’s going to be a very long time coming.
