iCloud

As reported by the BBC, Apple is facing a significant legal challenge in the UK, with consumer rights group Which? alleging that the company has effectively forced 40 million British users to rely on its iCloud service and overcharges them for it. The lawsuit could result in up to £3 billion in compensation, with each customer potentially receiving an average payout of around £70 if successful.

Apple, however, has denied that its practices are anti-competitive, arguing that customers are not obligated to use iCloud and can access third-party alternatives. The company asserts it “works hard to make data transfer as easy as possible” for users who choose other options.

This claim is part of a broader wave of legal actions against tech giants, which, according to Toby Starr from the law firm Humphries Kerstetter, have “operated without sufficient constraint” until recently. Other companies, such as Facebook, Google, Steam, and leading UK mobile networks, are also facing similar cases in the Competition Appeal Tribunal.

Which? argues that Apple’s pricing for iCloud storage—ranging from £0.99 per month for 50GB to £54.99 per month for 12TB—is exploitative and has effectively locked users into the Apple ecosystem for nearly a decade. Anabel Hoult, CEO of Which?, stated, “Taking this action allows us to help consumers get the compensation they deserve and encourage fairer competition.”

Apple has expressed its intent to contest the claim, maintaining that its iCloud policies are not anti-competitive. Meanwhile, the case is being supported financially by Litigation Capital Management, with the legal firm Willkie Farr & Gallagher representing Which?.

Legal expert Alan Davis from Pinsent Masons noted that similar cases may be on the rise, with litigation funders motivated to back claims that would otherwise struggle financially. Davis emphasized that proving Apple’s alleged market abuse will be challenging, as there is no current EU or UK competition law ruling against Apple for iCloud practices.

With the UK regulator also investigating cloud services, Which? has urged Apple to address consumer concerns without prolonged litigation. However, Apple remains firm in its stance, denying any wrongdoing.