Apple was not able to narrow the scope of a UK lawsuit accusing it of locking 40 million UK consumers into iCloud, to the detriment of third-party cloud storage providers. British consumer group Which? first filed the lawsuit in late 2024, and is asking for £3 billion for UK Apple customers.


Apple wanted to exclude non-paying ‌iCloud‌ users from the lawsuit, but the tribunal denied Apple's request in a 2 to 1 majority. The lawsuit will go to trial, and will cover both paying and non-paying ‌iCloud‌ customers.

Apple users get 5GB of free storage for photos, messages, and other content on the iPhone, but are encouraged to subscribe to Apple's higher-tier ‌iCloud‌ storage options when the 5GB limit is exceeded. Which? claims that Apple favors its own cloud storage option, and makes it difficult for customers to use alternative cloud storage providers.

Which? sued Apple on behalf of all Apple ‌iCloud‌ users in the UK, regardless of whether they pay for an ‌iCloud‌ subscription plan. Normally, a customer that has not lost anything would not be eligible for a damages payment, but Which? has taken a unique approach.

The tribunal said the lawsuit raises a "novel" legal question, because it is not aware of another case where damages have been requested for "forgone consumer surplus." Forgone Consumer Surplus (FCS) is a legal theory that in this case argues people who were priced out of an ‌iCloud‌ subscription because of Apple's alleged market abuse have suffered a tangible loss because they did not have the opportunity to buy a service they wanted at a fair price in a competitive market.

The 200GB ‌iCloud‌ tier that costs £2.99 might have only cost £1.99 at a "fair" price, for example. Which? argues that a customer who would have theoretically paid £1.99 for the service but was not able to do so because the actual £2.99 price was unaffordable suffered a £1 loss, even though the customer paid nothing. Lawsuits for damages are usually more straightforward, covering paying customers who experienced clear harm from inflated pricing.

While two members of the tribunal sided with Which?, the other took Apple's side. The justice who argued against FCS warned that the case could lead to a flood of cases with secondary claims from non-purchasers based on hypothetical willingness-to-pay calculations.

Apple owes no damages at this point, and is now facing a trial to determine whether it abused its position and gave ‌iCloud‌ preferential treatment on iOS.

All UK consumers who are eligible are automatically included in the claim unless they opt out. Eligible consumers include those who obtained ‌iCloud‌ services from November 8, 2018, to the present. Which? estimates that Apple could owe UK customers an average payout of £70.

Which? wants Apple to settle the claim without litigation by offering consumers their money back and opening up iOS to let users choose a cloud provider.
This article, "Apple Faces £3 Billion UK Trial Over iCloud Lock-In Claims" first appeared on MacRumors.com

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Apple today challenged the funding behind a $4 billion UK lawsuit during a tribunal hearing, raising new concerns about the iCloud class action as the company battles further antitrust scrutiny.


The case was initiated by consumer group Which on behalf of consumers, alleging that Apple's iCloud storage practices lock users into the service and cause them to pay more for cloud storage than they would have paid under more competitive conditions. Which is seeking compensation and an injunction to prevent Apple from continuing the alleged conduct.

The proposed class period runs from 1 October 2015 to the present, meaning that the claim targets both historic and ongoing conduct by Apple. The application also seeks injunctive relief aimed at preventing Apple from continuing the alleged abusive behavior in the future.

Apple told the Competition Appeal Tribunal that Which had not provided enough clarity about its third-party funder, Litigation Capital Management (LCM), which is paying for the legal action. LCM recently suffered a severe financial decline, losing 99% of its share value from its November 2024 level, leaving it worth about $16 million. Apple argued that this collapse raised questions about whether LCM could still support the lawsuit.

It also said that if it were allowed to pursue an appeal later in the process or if Which's funding is withdrawn, Apple could face a significant risk of not being able to recover its legal costs because LCM might not be able to pay them. The company added that both Apple and the proposed class representative should have been informed sooner and more clearly about LCM's situation.

The funding dispute emerges days after the tribunal refused Apple permission to appeal a separate ruling in a long-running developer class action, which found that Apple had abused its dominant position in iOS app distribution and in-app payment processing. That judgment concluded that Apple's App Store commission structure led to higher prices for consumers and restricted competition, leaving Apple facing potential damages of more than $1 billion.

The tribunal has not yet indicated when it will make a decision and the hearing continues.
This article, "Apple Questions Funding Behind UK iCloud Lawsuit" first appeared on MacRumors.com

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