Key Takeaways:
A £3bn class action accusing Apple of locking 40 million UK users into iCloud was cleared for trial by the Competition Appeal Tribunal.
The Competition Appeal Tribunal on Tuesday granted permission for a £3bn class action against Apple Inc., accusing the company of overcharging 40 million UK iCloud customers by restricting access to rival cloud storage services.
"No company, no matter how powerful, can get away with abusing its position," Anabel Hoult, chief executive of Which?, the consumer group bringing the claim, said.
The lawsuit covers consumers who used iCloud between November 2018 and June 2026 and were UK residents on June 8, 2026. Individual payouts could reach roughly £77 each if the claim succeeds. Apple charges 99 pence a month for 50 gigabytes of storage and as much as £54.99 a month for 12 terabytes.
The case, filed in November 2024, is not expected to be heard until October 2028. Apple has called the claims unfounded and said it plans to appeal, arguing that no customer is required to use iCloud and that alternatives exist — though the company restricts rival services from full device integration, citing security.
Which? alleges that since 2015, Apple has effectively trapped customers into its cloud ecosystem by denying competing storage providers — including Google Drive, Microsoft OneDrive, and Dropbox — the same level of device access that iCloud enjoys. Apple says the restrictions are necessary for security and privacy, but the consumer group argues they constitute anti-competitive behavior that has allowed the company to charge above-market prices.
Apple users receive a small amount of free storage before being prompted to pay for iCloud to back up photos, videos, messages, and contacts. The pricing structure ranges from 99 pence per month for 50 gigabytes to £54.99 per month for 12 terabytes, generating what Which? estimates as billions in excess revenue over the claim period.
Consumers who used iCloud during the claim window and were living in the UK on June 8, 2026, are automatically included unless they opt out by October 8, 2026, via Which?'s claim website. Non-UK residents on that date must notify Which? by October 8 to opt in. Anyone who first started using iCloud after June 8, 2026, will not be covered.
The green light from the tribunal marks a significant milestone for collective redress in the UK, which has seen fewer class actions than the US. "This should send a strong message to any other companies using anti-competitive tactics," Hoult said. Apple has previously described the claims as "meritless" and said it "strongly disagrees" with the decision to let the case proceed.
The trial, scheduled for October 2028, will determine whether Apple's iCloud practices violated UK competition law — and whether 40 million customers are entitled to a share of the £3bn payout.
This article is for informational purposes only and does not constitute investment advice.
