Apple is facing a nearly £3 billion lawsuit due to allegations of violating competition laws by locking millions of UK consumers into using its cloud storage service, iCloud, at allegedly inflated prices.
The consumer group Which? is spearheading the legal claim, arguing that approximately 40 million UK-based Apple customers could be entitled to a payout averaging £70 each, should the claim be successful.
Apple has strongly denied the allegations put forth by Which?, stating that it intends to “vigorously defend” itself against any legal challenge. This claim follows a similar lawsuit initiated against Apple in the United States in March 2024, which remains unresolved.
The class action in the UK covers all consumers who have paid for iCloud services since October 1, 2015. According to Which?, Apple’s iCloud service, integrated into every Apple device, provides a cloud-based storage solution allowing users to back up photos, files, and other data securely online.
While Apple offers 5GB of storage for free, users must pay to access additional space, with subscription plans ranging from 99p per month to £54.99 per month. Prices were reportedly increased by up to 29% last year, a move described by some media outlets as a “shock price hike” that impacted millions of users.
The legal complaint was filed with the UK’s Competition Appeal Tribunal, a specialized judicial body responsible for resolving competition and economic regulatory issues. The claim asserts that Apple abused its market position by providing preferential treatment to its iCloud storage service, thereby “trapping” customers with Apple devices into using iCloud.
Which? argued that Apple’s dominance in the mobile operating system market with iOS gave it a responsibility not to use its monopoly status to gain an unfair advantage in related markets, including cloud storage. The consumer group further accused Apple of making it difficult for customers to switch to alternative cloud service providers by restricting their ability to store or back up all their data with third-party services. This alleged lack of competition has reportedly led to consumers paying more for storage services.
In June 2023, monthly iCloud subscription fees for UK consumers were increased by between 20% and 29%. Which? is seeking damages for affected Apple users, estimating that each consumer could be eligible for an average payout of £70, depending on how long they have subscribed to the service.
The consumer group is leveraging the “opt-out collective actions” mechanism, introduced under the Consumer Rights Act 2015, which allows an organization to represent consumers in mass harm cases. Eligible consumers are automatically included in the claim unless they choose to opt out.
Which? has retained the law firm Willkie Farr & Gallagher to lead the case, with financial backing from Litigation Capital Management, a prominent dispute finance provider. Nevertheless, Which? has urged Apple to settle the matter out of court by refunding affected consumers and making its iOS platform more accommodating to third-party cloud service options.
Anabel Hoult, CEO of Which?, stated, “We believe Apple customers are owed nearly £3 billion.”
In response, Apple maintained that iCloud usage is not mandatory, highlighting that many customers rely on alternative data storage services. The company emphasized that it strives to simplify data transfers, whether to iCloud or other providers.
“We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise,” Apple said in a statement.
It further noted that close to 50% of its customers do not use or pay for iCloud+ subscriptions. Apple also defended its pricing strategy, claiming its 6TB monthly plan at £26.99 is competitively priced compared to Proton’s equivalent service, which costs £33.28.
