iCloud Storage Plans: Where Apple Went Wrong

News that Apple is facing a £3B UK lawsuit over an alleged iCloud storage monopoly is the first in a long series of headaches for Tim Cook and his teams in Cupertino. Alternatively, tech leaders across Silicon Valley will run with the idea that European nations focus on regulating rather than innovating.

Apple could be forgiven for thinking of Europe as a thorn in its side after the European Commission continues to crack down on the tech behemoth for geo-blocking its app store, easing restrictions on app developers, and demanding that it allow users to delete Safari. Elsewhere, the EU requires Apple to improve its interoperability and solve a 14bn tax affair in Ireland.

Forcing users into secure walled gardens for their own safety is no longer cutting it with regulators.

We explore how Apple got it wrong with iCloud, what this means for subscribers, and how history is repeating itself with the increasing regulation of big tech.

Table of Contents Table of Contents

1. Key Takeaways
2. The Problem With iCloud
3. Cost of iCloud Storage Plans in 2024
4. Deja Vu for Yet For Tech Regulation
5. Where Apple Went Wrong With iCloud
6. The Bottom Line
7. FAQs
8. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. The Problem With iCloud
3. Cost of iCloud Storage Plans in 2024
Show Full Guide
4. Deja Vu for Yet For Tech Regulation
5. Where Apple Went Wrong With iCloud
6. The Bottom Line
7. FAQs
8. References

The Problem With iCloud

In 2011, Apple offered users 5GB of free iCloud storage for owners of either iOS devices or Macbooks.

Thirteen years ago, there was a lot of storage, and the need for additional storage options seemed years away. But generations of iPhones and millions of selfies later, Apple has stuck to a measly 5GB for its free tier.

From the moment many Apple users wake up, the first message many see on their iPhone or iPad is a notification warning them that their device will not be backed up unless they pay for more storage.

After weeks or months of nagging, many feel coerced into paying the subscription to make the problem go away. But are these pricing tiers designed to lock users into paying a premium?

Users have arguably been nudged to go from paying $0.99 for 50GB to $2.99 for 200GB of storage. After all, it’s just a couple of dollars to protect over a decade of memories.

But, with multiple devices, many are finding that the gap between 200GB and the next tier of 2TB for $9.99 per month is starting to impact them. There is a collective realization that the convenience of being ‘locked in’ was always destined to come at a high cost further on down the line.

Cost of iCloud Storage Plans in 2024

UK-based Consumer rights group Which? filed a $3.8 billion lawsuit against Apple on November 14, 2024, on behalf of 40 million UK iPhone and iPad users.

The filing accuses the company of abusing its market dominance by forcing customers to use Apple iCloud storage plans while restricting access to alternative cloud storage.

Around 40 million iCloud customers could be entitled to up to £70 in compensation.

Find out if you're one of them 👇https://t.co/FIiq0Zj9ai

— Which? (@WhichUK) November 14, 2024

If successful, the filing will mean that Apple customers who have subscribed to iCloud services on or after 1 October 2015 could receive £70 in compensation. It would also force Apple to allow users to choose other cloud providers to back up their devices.

Which? said:

“This unlawful conduct locks users into Apple’s iCloud storage services, prevents them from switching to alternative cloud providers, and enables Apple to charge higher fees for iCloud services than would be the case if Apple behaved lawfully.”

Problems seem to be mounting for Apple, which is also expected to face the EU’s Digital Markets Act penalty for anti-competitive practices by limiting competition on its App Store.

If heavy regulation against a big tech company sounds familiar, we have been here many times before.

Deja Vu for Yet For Tech Regulation

The rise of Google in the 1990s was made possible by Microsoft becoming weighed down by regulation and antitrust laws. The bundling of Internet Explorer with Windows PCs during the browser wars would eventually lead to the Justice Department and 20 state attorneys general accusing Microsoft of abusing its dominant position to prevent competition.

Fast forward to 2024, and the same Antitrust frameworks that routinely fine Amazon, Google, and Meta are now looking at Apple in the same way they did Microsoft in the nineties.

The secure walls of Apple’s ecosystem are being dismantled brick by brick. There are many parallels to Microsoft vs EU all those years ago.

If Apple cannot lock users into using iCloud, Safari, or the App Store, it can no longer control its destiny. With a mounting list of antitrust cases and regulations with different rules across each region, it takes up as many headlines as Apple’s tech releases in 2024.

Where Apple Went Wrong With iCloud

Apple consumers highlighted in 2023 that a 29% increase in charges for UK customers was unacceptable. The free tier of 5GB of free storage remaining unchanged since 2011 also rubs salt in the wounds of cash-strapped consumers, and many commentators have praised Which? for shining a spotlight on the current situation with iCloud costs.

Apple reportedly rejects the idea its customers are tied to using iCloud and will vigorously defend itself. But is Apple failing to read the room and becoming disconnected from its customers?

Apple will argue that using iCloud is voluntary and that alternatives exist for those willing to manage their backups. However, these other methods are not as easy as Apple’s in-built offerings.

And from a consumer point of view, It’s easy to see why a tiered system that has lengthy jumps from 200GB ($2.99) to 2TB ($9.99) followed by a giant leap to 6TB ($29.99) feels exploitative  — with all of these fees charged monthly.

If the courts determine that Apple is guilty of ‘locking in’ users to expensive iCloud subscriptions without any other available option, it could indicate a rocky road ahead for the Cupertino tech giant.

The Bottom Line

There is no denying that Apple has built its reputation for providing users with a safe and easy-to-use ecosystem. The broader debate is whether the price of safety and convenience is flexible for consumers or if it’s an anti-competitive way of forcing reliance on Apple’s services like iCloud.

Do you feel trapped and overcharged, or are you happy to pay the price for the convenience and security Apple provides? How you answer this question will determine whether you are ready to go it alone and escape Apple’s walled garden.

FAQs