Apple is facing a near-£3 billion lawsuit in the UK, accused of abusing its market dominance by overcharging millions of customers for its iCloud cloud storage service.
The legal action, filed by consumer group Which?, claims that Apple engaged in anti-competitive practices that resulted in around 40 million UK consumers being “locked” into paying for iCloud services at inflated prices. If successful, the case could see affected consumers receive an average payout of £70 each.
The lawsuit, filed with the UK’s Competition Appeal Tribunal, alleges that Apple’s iCloud service, built into all its devices, gave the company an unfair advantage by making it difficult for users to switch to third-party cloud storage providers.
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While iCloud offers 5GB of free storage, customers are required to pay for additional space, with prices ranging from 99p to £54.99 per month.
In 2023, Apple raised its iCloud subscription fees by up to 29%, which Which? described as a “shock price hike” for millions.
The consumer group argues that Apple’s dominance in the smartphone market—through its iOS operating system—allowed the company to “trap” users into its cloud service.
They also contend that Apple’s refusal to let users back up all their phone data with alternative cloud providers further stifled competition, leading to consumers paying more than they should.
Which? is using the “opt-out collective actions” framework, introduced by the Consumer Rights Act 2015, which automatically includes all affected consumers unless they choose to opt out.
In response, Apple denied the allegations, asserting that users are not required to use iCloud and that many opt for third-party cloud services.
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The company also said its pricing was competitive with other providers, citing its 6TB plan priced at £26.99 compared to rival Proton’s £33.28.
Anabel Hoult, CEO of Which?, has called for Apple to resolve the case by offering refunds to affected consumers and providing users with more freedom to choose their cloud storage providers.