Apple is facing a UK lawsuit accusing it of locking 40 million UK consumers into its iCloud service, allegedly disadvantaging third-party cloud storage providers. The lawsuit, initiated by the British consumer group Which? in late 2024, seeks £3 billion in damages for UK Apple users. Apple’s attempt to exclude non-paying iCloud users from the lawsuit was denied, meaning the trial will include both paying and non-paying customers.
Apple provides 5GB of free storage for iPhone users, encouraging them to upgrade to higher-tier iCloud storage plans when this limit is exceeded. Which? claims Apple prioritizes its own cloud service, creating barriers for customers wanting to use alternative providers. The lawsuit represents all UK iCloud users, regardless of their subscription status.
A significant aspect of the case is the legal theory of Forgone Consumer Surplus (FCS), which argues that consumers unable to afford Apple’s alleged inflated prices suffered a tangible loss. For example, a 200GB iCloud plan costing £2.99 might have been available for £1.99 in a competitive market. Which? contends that consumers priced out of this service experienced a loss, even without making a purchase.
The tribunal’s decision was split, with two members supporting Which?’s stance, while one sided with Apple, cautioning that the case might lead to numerous claims based on hypothetical willingness-to-pay scenarios. Currently, Apple owes no damages, but the trial will determine if it misused its market position to favor iCloud.
Eligible UK consumers are automatically included in the claim unless they opt out, covering those who used iCloud services from November 8, 2018, onwards. Which? estimates an average compensation of £70 per customer and urges Apple to settle the claim by refunding consumers and allowing more flexibility in cloud provider choice on iOS.
