A UK tribunal has rejected Apple’s attempt to narrow a lawsuit alleging the company locked 40 million users into its iCloud service, blocking access to alternative cloud storage providers. The consumer rights group Which? originally filed the case, seeking compensation on behalf of all UK Apple customers who have used iCloud since late 2018.
The tribunal ruled by a 2-1 majority that the lawsuit will proceed to trial and include both paying and non-paying iCloud users. Apple had sought to exclude consumers who only use the free 5GB of iCloud storage from the claim, but the tribunal highlighted that even those users may have suffered losses under a novel legal theory known as forgone consumer surplus (FCS).
Under FCS, consumers who wanted to buy iCloud storage at a fair price but were deterred by Apple’s allegedly inflated pricing might have experienced tangible losses despite never subscribing. For example, if an iCloud 200GB subscription normally priced at £2.99 should have cost £1.99 in a competitive market, then users discouraged by the higher price are said to have lost the difference, even though they paid nothing. This approach challenges conventional damage claims, which typically involve direct overpayment by subscribing customers.
Which? accuses Apple of favoring its own cloud storage options on iOS devices and erecting barriers that dissuade users from choosing third-party providers. The group calls for Apple to open its platform to allow alternative cloud storage services and to compensate consumers affected during the period from November 2018 to the present.
The tribunal acknowledged that this lawsuit raises new legal questions about consumer harm in digital markets. One member expressed concern that the FCS approach might encourage a wave of speculative claims by users based on hypothetical willingness to pay. Still, the majority allowed the case to move forward.
Which? estimates potential payouts averaging £70 per affected consumer if the case succeeds. Apple is yet to admit liability and faces a full trial to determine whether it abused its market power to favor iCloud on British customers’ devices. Eligible UK users are included automatically unless they choose to opt out of the collective claim.