Which? Hits Apple With £3B Lawsuit After Calling Out Big Tech Smart Data Gathering Tactics

Key Takeaways

• Which? has taken aim at Big Tech, this time with a £3 billion lawsuit against Apple.
• The consumer group alleges that the iPhone maker had unfairly pushed its iCloud service onto users.
• Which? previously launched an investigation that found smart air fryers and TVs were collecting an “excessive” amount of data from users.

Consumer choice platform Which? has launched a £3 billion lawsuit against Apple, alleging the iPhone maker forced its iCloud services on its customers.

The move comes just days after the consumer group released a damning report claiming smart home devices were collecting “excessive” amounts of data from users.

Lawsuit Launched Against Apple

Which? claims Apple is unfairly bolstering iCloud as the sole place for users to store photos, videos, and other assets. The consumer group alleges that this has stifled competition due to Apple making it difficult for users to use an alternative on its devices.

Which? also claimed that the iPhone maker is overcharging users for subscriptions with iCloud.

In the lawsuit filed with the Competition Appeal Tribunal, the group seeks monetary damages for all Apple customers who have obtained iCloud services since Oct. 1, 2015.

The consumer group believes the average buyer of the service could be owed £70.

Apple has fought back against the claims, stating it 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,” the company said in a statement. “In addition, we work hard to make data transfer as easy as possible — whether it is to iCloud or another service.”

Which? CEO 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,” Hoult added.

Smart Home Devices Are Hungry for Data

In addition to scrutinizing Big Tech’s competition practices, the consumer group has also been working to expose the technology industry’s data protection issues.

According to a Which? report released last week, an increasing number of smart home devices are collecting “excessive” amounts of data from users – and may even be listening to users.

The group tested three air fryers and found that every brand had attempted to request permission to record audio on a user’s phone, as well as their precise location data.

The advocacy group found that the Xiaomi air fryer app, a leading air fryer brand, connected users to trackers from various tech giants, including Meta and Tencent.

“Our research shows how smart tech manufacturers and the firms they work with are currently able to collect data from consumers, seemingly with reckless abandon, and this is often done with little or no transparency,” Harry Rose, Which? magazine editor, said.

The Growth of Smart Home Tech

Smart home devices are becoming more popular every year. What started as a few simple gadgets have transformed into a full ecosystem of smart thermostats, lighting systems, and voice-activated assistants.

Research firm GlobalData estimated the global smart homes market will be worth $75.3 billion by 2025, a significant increase from $35.9 billion in 2020.

Voice assistants like Amazon Alexa, Google Assistant, and Apple’s Siri have played a significant role in making smart homes more accessible.

In October, a report from Bloomberg claimed that Apple was considering future plans to enter the home market by placing screens and software throughout the house.

Apple’s HomeKit previously struggled with restrictive security requirements, while Amazon and Google devices have seen extreme success with their advanced voice capabilities around the home.

However, Apple’s new plans raise concerns from experts who highlighted the cybersecurity risks with increased connectivity.

“We’ve already seen examples of cybercriminals targeting individuals by locking them out of their own systems or controlling smart devices until a ransom is paid,” Durgan Cooper, Juberi Group CEO and advisor to the House of Lords, said.

“While Apple is known for maintaining tight control over its ecosystem and regularly releasing security updates, consumers must ensure that their devices—whether from Apple or other mainstream brands—are consistently updated with the latest patches,” Cooper added.

Can Blockchain Help?

Some experts believe that blockchain has the potential to enhance the security and interoperability of smart home devices significantly.

Iman Sheikhansari, developer and sustainability consultant, said blockchain can ”enhance smart home technology by providing a decentralized, trustless, and verifiable platform for data exchange, management, and governance.”

In a blog post , Sheikhansari said blockchain could give users of smart home devices more control and ownership over their data.

“This can enhance the transparency and accountability of data sharing and usage among different stakeholders,” he wrote.

Last month, Samsung announced it was set to enhance the security of its AI-powered home devices with blockchain technology, highlighting the industry’s adoption of the decentralized tech.

The company announced plans to extend Knox Matrix to mobile devices, TVs, and a range of modern home appliances.

“Knox Matrix provides integrated protection for interconnected devices, allowing them to mutually monitor for security threats and notify users of threat-blocking measures,” the company wrote in a press release.