A major consumer rights group in the U.K., ‘Which?’, is launching a legal battle against Apple, representing roughly 40 million iCloud users. The lawsuit seeks £3 billion in compensation, accusing Apple of exploiting its market position to unfairly charge for its cloud services.
The claim, submitted to the U.K.’s Competition Appeal Tribunal, argues that Apple has used its control over iOS to unfairly promote iCloud over other cloud storage services. This forced users into purchasing iCloud storage at what the group describes as exorbitant prices. According to ‘Which?’, iOS users have found it challenging to choose alternative storage options as the system nudges them toward iCloud for storing photos, messages, and other data—especially once they exceed the free 5GB limit.
The lawsuit goes on to contend that Apple’s pricing strategy for iCloud in the U.K. is inflated due to the lack of competitive options. A significant price hike of 20% to 29% across different storage tiers occurred in 2023. This action claims that consumers might be entitled to around £70 each, depending on their subscription history.
This is not an isolated case, as a similar lawsuit in the U.S. claims Apple illegally monopolized the cloud storage market. In the U.K., the action is on an opt-out basis, meaning U.K. consumers are included unless they choose not to participate. Meanwhile, non-U.K. residents must actively opt-in.
The £3 billion compensation figure considers factors such as potential opt-outs and duplications. While ‘Which?’ operates as a non-profit, the litigation is supported financially by Litigation Capital Management. The group hopes Apple will address the issue by refunding consumers and opening iOS to more cloud service options.
Anabel Hoult, chief executive of ‘Which?’, emphasized the importance of holding large corporations accountable, stating the lawsuit aims not only to compensate consumers but also to foster a more competitive market environment.
If Apple does not settle, the next phase of the lawsuit will depend on whether the tribunal allows ‘Which?’ to represent the consumers collectively. The litigation reflects a growing trend of legal actions against major tech companies following increased antitrust scrutiny. In the past, Apple has faced similar actions in the U.K., including a lawsuit over App Store fees and another alleging price collusion with Amazon.
