Apple faces £3 Billion UK lawsuit as consumer group 'Which?' challenges iCloud monopoly

Apple is in hot water with UK consumer group ‘Which?’, which has filed a massive £3 billion lawsuit against the tech giant. The case accuses Apple of using its market power to lock customers into its iCloud service while making it harder to use other cloud storage options.

If successful, up to 40 million UK iPhone users could receive compensation for what Which? calls "rip-off prices" for iCloud storage.

Which? claims Apple has limited consumer choice by making it easy to sign up for iCloud but difficult to switch to alternatives. The issue? iPhone users can’t back up their data on third-party services directly from their phones.

While Apple offers 5GB of free iCloud storage, it quickly fills up, especially with photos and videos. After that, users have to pay monthly fees, starting at 99p for 50GB.

This case, filed with the UK’s Competition Appeal Tribunal, claims that Apple’s control over iOS (its operating system) creates an unfair advantage for its own service.

Essentially, Which? is arguing that Apple’s setup nudges people toward iCloud, making it difficult for competitors to break in and drive down prices.

Anabel Hoult, Which? CEO, said, “Apple customers are owed nearly £3 billion for being forced into iCloud, limiting their choice and driving up costs. We want to stop this behavior and make tech giants play fair.”

How much could consumers get?

If the case is successful, Apple could owe each UK customer around £70, depending on how long they’ve paid for iCloud. Apple raised its iCloud prices in the UK by 20-29% in 2023, so users are paying more than ever.

Which? argues that consumers are “locked in” to iCloud at a cost they wouldn’t face if Apple allowed easier switching to other services.

Apple denies the claims, saying users aren’t forced to use iCloud. In a statement, Apple said, “Our users are not required to use iCloud, and many rely on third-party storage options.” The company insists that it will “vigorously defend” against claims that its practices are unfair.

What’s next?

Now that the lawsuit is filed, Which? will ask the tribunal to allow it to represent all affected UK consumers automatically.

If approved, UK iPhone users who’ve paid for iCloud since 2015 would be included in the claim unless they choose to opt out.

This is one of the largest cases brought under UK’s collective action rules, which make it easier for consumer groups to take on big corporations in cases where many people are affected.

If Which? wins, it could lead to major changes in how Apple—and other tech giants—handle data and cloud storage, especially in Europe.

For now, UK customers can follow updates at cloudclaim.co.uk, where Which? is providing case details and registration for updates.

A Look at the Big Picture

This lawsuit highlights growing frustration with tech companies over how they control services in their ecosystems.

Which? isn’t alone in this fight—Apple faces similar claims in the US, where regulators are looking closely at how Apple handles the iPhone’s relationship with cloud services.

For UK consumers, the case could mean a fairer shake when it comes to storing their digital lives.

Meanwhile, the European Commission has hit Meta with a €797.72 million fine, (we wrote about it here) accusing the tech giant of breaching EU antitrust rules by manipulating its dominant position in the online marketplace sector. 

The penalty, announced on Thursday, targets Meta’s bundling of its Facebook Marketplace service with its personal social network, Facebook, giving the company an unmatchable competitive edge.

As the tech sector braces for more regulatory scrutiny, the decision will likely set a precedent for how dominant digital platforms are treated in the future.