Apple could be forced to pay $95 to all iCloud users in the UK, if a class action lawsuit against the company is successful.
Apple has failed to reduce the scope of a class action lawsuit in the UK, and all iCloud users in the country will owe $95 if the company loses.
Apple has had its fair share of lawsuits in the UK, with ongoing cases involving App Store fees, an alleged price-fixing scheme with retailers, and more.
In November 2024, consumer rights group and publication Which? Apple also sued, alleging the company had an anticompetitive way of forcing users to pay for iCloud storage.
It has been argued that Apple breached UK competition law and abused its dominant market position by not letting iOS and iPadOS choose another cloud provider. Additionally, Apple has been accused of charging “ripoff prices” for iCloud storage in the country.
As Apple failed to limit the scope of the class action, the case is now in trial.
As Which? claims in a social media post, Apple has locked “millions of consumers into its iCloud service at fraudulent prices.” The group claims that around 40 million UK iCloud users could be entitled to compensation equivalent to $95, assuming its lawsuit is successful.
The lawsuit seeks damages from iPhone and iPad users who paid for iCloud storage. However, under the Forgone Consumer Surplus (FCS) principle, the suit also argues that iCloud users in the UK were excluded from an iCloud subscription because Apple abused its market position.
Hypothetically, users who found Apple’s monthly payment to be around $12 for 2TB of cloud storage would have paid around $11 if it was a “fair” market price. Under FCS legal theory, these potential customers “lost” $1 due to Apple’s uncompetitive pricing and lack of an adequate alternative.
Consumer rights group Which? argued that Apple should pay these hypothetical buyers, even though they never actually lost anything or paid anything in the traditional sense.
It states that “approximately 40 million Apple customers in the UK who used iCloud services as of November 8, 2018” may be entitled to compensation.
Apple attempted to narrow the scope of the lawsuit so that it only included British iCloud users who had paid for a subscription. “We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal action to the contrary,” the company said in 2024.
However, his attempts were unsuccessful. The UK Competition Appeal Tribunal ruled by two votes to one that the FCS legal theory was applicable. Essentially, the class action could result in compensation for both paid and non-paying UK iCloud users.
The iCloud restrictions that inspired the lawsuit
iCloud itself has been around since 2011, when it debuted with iOS 5. The service offered system-wide integration, allowing users to sync their notes, emails, photos, files, and more through the cloud storage platform.
Apple has been accused of using uncompetitive pricing for its iCloud storage options in the UK.
At the time, Apple offered its users 5 GB of iCloud storage for free. Although it might have been generous all those years ago, Which? argued that 5G would not meet consumer needs in 2024 and beyond.
There may be some truth to this claim, since nearly two-thirds of US Apple users paid for additional iCloud storage in 2024. However, Apple faced a lawsuit over its free 5GB iCloud storage option in the US, and that case was ultimately thrown out that same year.
However, the UK lawsuit against Apple is still ongoing and is not just about the free 5GB storage plan.
Which? also argued that Apple has made iCloud the easiest cloud service to use on iOS. Alternative cloud storage options on iOS really don’t offer the same degree of integration.
If you want to store your photos and videos via Google Drive, for example, you’ll need to install the app yourself. You also won’t be able to use a Google-made tool or lock tool in place of Find My on iOS, which requires the use of an iCloud account.
If the UK’s lawsuit against Apple is successful, all iCloud users in the country will be automatically enrolled, meaning they will be eligible for payment. This includes UK consumers who used iCloud on or after November 8, 2018.
The case could also set a precedent in the country. A member of the UK’s Competition Appeal Tribunal has argued that we could see a host of similar cases centered on hypothetical purchases.
However, the outcome of the class action remains to be seen, and it could be months before a decision is made.