Apple is continuing to face a major legal battle in the UK over its iCloud service, with consumer group Which? seeking up to £3 billion in damages on behalf of millions of Apple users.
The case centers around claims that Apple unfairly pushed iPhone and iPad users toward iCloud while making competing cloud storage services less practical to use on iOS.
Apple had attempted to reduce the scope of the lawsuit by excluding users who only use the free 5GB iCloud tier, arguing that non-paying customers should not be eligible for compensation. However, a UK tribunal rejected that request in a split decision, meaning both paying and non-paying iCloud users remain included in the case.
The lawsuit now moves toward trial.
At the heart of the claim is Apple’s handling of cloud storage on iPhone. Every Apple user receives 5GB of free iCloud storage, which is shared across photos, backups, messages, and other data. Once that limit is reached, users are encouraged to upgrade to one of Apple’s paid iCloud+ plans.
Which? argues that Apple’s control over iOS gives its own cloud platform an unfair advantage, while rival storage services are placed at a disadvantage.
One of the more unusual aspects of the lawsuit is that it also includes users who never paid for iCloud storage at all.
The argument is based on what’s known as “forgone consumer surplus,” a legal theory claiming that some consumers may have wanted to subscribe to iCloud at a lower price but were effectively priced out because of Apple’s alleged market dominance.
For example, the case argues that a storage plan currently costing £2.99 per month may have been cheaper in a more competitive market. Under that theory, even customers who never subscribed could still be considered financially affected.
The tribunal reportedly described the argument as legally “novel,” noting that cases involving damages for hypothetical missed purchasing opportunities are rare.
Not everyone on the tribunal agreed with the approach. One judge reportedly sided with Apple, warning that allowing claims from non-paying customers based on hypothetical pricing could open the door to a wave of similar lawsuits in the future.
Apple has not been ordered to pay damages at this stage. The upcoming trial will instead determine whether the company abused its market position and unfairly favored iCloud on iPhone and iPad.
Anyone in the UK who used iCloud from November 8, 2018 onwards is automatically included in the claim unless they choose to opt out. Which? estimates that eligible users could receive around £70 each if the case succeeds.
The consumer group says it would prefer Apple settle the dispute outside court by compensating customers and allowing greater flexibility for alternative cloud storage providers on iOS.