A UK competition tribunal has allowed a class-action lawsuit to proceed against Apple regarding the alleged lock-in of 40 million consumers [1].
The ruling expands the scope of the legal challenge, meaning the outcome could impact millions of users regardless of whether they pay for cloud storage. This case tests whether Apple used its dominant market position to stifle competition from third-party storage providers by making iCloud the default option for its device users.
The lawsuit was brought by the British consumer group Which? after a complaint was filed in late 2024 [1, 3]. The group said Apple abused its market position by integrating iCloud in a way that effectively locked users into its ecosystem. This practice is claimed to have harmed both the consumers and the third-party cloud storage providers who compete for the same market [1, 2].
Which? is seeking approximately £3 billion [1] in damages. Some estimates place this figure at $4.1 billion [4]. If the court finds Apple liable, some reports suggest individual UK iCloud users could receive compensation of approximately $95 [4].
In a significant development, the tribunal ruled that the case will include both paying and non-paying iCloud users [4]. This decision prevents Apple from limiting the class of affected consumers to only those who purchased additional storage plans. The lawsuit argues that the restrictive nature of the ecosystem affects all users who rely on the service for data synchronization, and backups.
The case focuses on the intersection of hardware and software integration. The claimants said the seamless nature of iCloud is not merely a convenience but a strategic barrier that prevents users from switching to other services without significant friction.
“Apple faces a claim seeking approximately £3 billion in damages.”
This legal battle highlights the growing regulatory scrutiny of 'ecosystem lock-in' in the UK and Europe. By including non-paying users in the class action, the tribunal is acknowledging that market harm can occur through default settings and software integration, not just through direct financial charges. A ruling against Apple could force the company to allow deeper integration of third-party cloud services on iOS and macOS to avoid antitrust penalties.
