Apple hit with $4 billion UK iCloud lawsuit as 40 million users join class action

Apple is facing a fresh legal fight in the UK after Britain’s competition tribunal approved a £3 billion, or roughly $4 billion, lawsuit accusing the company of locking millions of users into its iCloud storage service.

The ruling clears the way for a collective action brought by Which?, a UK consumer rights group that says Apple abused its market position by making it harder for iPhone, iPad, and Mac users to use rival cloud storage services. The case could cover nearly 40 million UK consumers who used iCloud between November 2018 and June 2026.

“Mass £3bn iCloud lawsuit for UK customers gets green light. The lawsuit will represent all UK Apple customers who used iCloud services since 1 November 2018 and could see nearly 40 million users getting compensation for subscription fees,” Sky News reported.

Britain’s Competition Appeal Tribunal granted a collective proceedings order earlier this month, allowing the consumer group to represent Apple users in the case after rejecting an effort by the iPhone maker to block parts of the claim.

The lawsuit was first filed in November 2024. At the heart of the case is an argument that Apple built iCloud so deeply into its ecosystem that users were effectively steered toward it, even if they might have preferred other options.

The consumer group alleges that Apple restricted how certain files could be stored, tied important backup and syncing functions to iCloud, and used prompts and system design inside iOS to nudge users toward its own service. In its view, that weakened competition in the cloud storage market and allowed Apple to charge more than it otherwise could have.

“Which? wants to make clear that no company, no matter how powerful, can get away with abusing its position,” Anabel Hoult, chief executive of the consumer group, said in a statement.

Apple rejected the allegations and said the case had no merit.

“We work hard to make iCloud a great experience, but no customer is required to use it, and customers in the UK have plenty of alternatives to choose from,” the company said in an emailed statement, according to Reuters.

The lawsuit is being brought on behalf of UK iCloud users who subscribed to the service during the period at issue. Which? estimates damages at around £3 billion, with potential payouts of up to £77 per person if the case succeeds.

The dispute adds to growing scrutiny over how large tech companies bundle services inside tightly controlled ecosystems. For Apple, iCloud is far more than a storage add-on. It sits at the center of device backups, photo syncing, file storage, and account continuity across the company’s hardware lineup. That integration has long been one of Apple’s biggest selling points. The question in court will be whether it crossed the line from product design into anti-competitive conduct.

A trial is expected in 2028.