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Apple Questions Funding Behind UK iCloud Lawsuit

Apple today challenged the funding behind a $4 billion UK lawsuit during a tribunal hearing, raising new concerns about the iCloud class action as the company battles further antitrust scrutiny.

iCloud General Feature Redux
The case was initiated by consumer group Which on behalf of consumers, alleging that Apple's iCloud storage practices lock users into the service and cause them to pay more for cloud storage than they would have paid under more competitive conditions. Which is seeking compensation and an injunction to prevent Apple from continuing the alleged conduct.

The proposed class period runs from 1 October 2015 to the present, meaning that the claim targets both historic and ongoing conduct by Apple. The application also seeks injunctive relief aimed at preventing Apple from continuing the alleged abusive behavior in the future.

Apple told the Competition Appeal Tribunal that Which had not provided enough clarity about its third-party funder, Litigation Capital Management (LCM), which is paying for the legal action. LCM recently suffered a severe financial decline, losing 99% of its share value from its November 2024 level, leaving it worth about $16 million. Apple argued that this collapse raised questions about whether LCM could still support the lawsuit.

It also said that if it were allowed to pursue an appeal later in the process or if Which's funding is withdrawn, Apple could face a significant risk of not being able to recover its legal costs because LCM might not be able to pay them. The company added that both Apple and the proposed class representative should have been informed sooner and more clearly about LCM's situation.

The funding dispute emerges days after the tribunal refused Apple permission to appeal a separate ruling in a long-running developer class action, which found that Apple had abused its dominant position in iOS app distribution and in-app payment processing. That judgment concluded that Apple's App Store commission structure led to higher prices for consumers and restricted competition, leaving Apple facing potential damages of more than $1 billion.

The tribunal has not yet indicated when it will make a decision and the hearing continues.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Top Rated Comments

gstevie Avatar
19 weeks ago

A company the size of Apple should always have to cover its legal costs in full and not be able to recover them.
So countless people/organisations could frivolously take them to court, and Apple has to spend to defend themselves and never has the opportunity to recover any of that?
Score: 11 Votes (Like | Disagree)
19 weeks ago

Exactly there is the mistake:
“Apple could face a significant risk of not being able to recover its legal costs because LCM might not be able to pay them.”
A company the size of Apple should always have to cover its legal costs in full and not be able to recover them.
Bull. Then anyone could file a nuisance lawsuit without ever having to worry about paying costs for losing.
Score: 9 Votes (Like | Disagree)
19 weeks ago
My Apple account is still in the UK despite not having lived there for many years. I have no problem with my iCloud and Apple Family subscriptions and did not ask anyone to intervene on my behalf.
Score: 9 Votes (Like | Disagree)
switz Avatar
19 weeks ago
I really do not want the prices of Apple equipment to be raised because a party that has financial problems is suing and possibly collapses and cannot pay the the costs of the litigation that are allowed by law to be recovered by Apple.

Getting tired of folks being entitled to others creative works and not paying compensation for that knowledge.
Score: 8 Votes (Like | Disagree)
19 weeks ago
I once was scammed into buying a lifetime subscription for a few terabytes of cloud storage from a company for $49. Unfortunately, they do not guarantee uptime or usability. It’s buried in their TOU, which meant like many, the service is unusable and we couldn’t get our money back because of the TOU..

Yeah you can get something cheaper but in my experience you end up losing money and data. There are so many fly by night cloud storage scams going on right now you never know if you just got scammed or did a hacker just steal all your data.

When I tried to compare iCloud pricing to other reliable cloud storage providers like Google and Amazon it was virtually same.

Not sure what the point of this lawsuit if the majority of reliable cloud storage is similarly priced and low cost ones typically do not work well or at all and potentially for your data to end up for sell on the dark web is higher.
Score: 7 Votes (Like | Disagree)
surferfb Avatar
19 weeks ago

Exactly there is the mistake:
“Apple could face a significant risk of not being able to recover its legal costs because LCM might not be able to pay them.”
A company the size of Apple should always have to cover its legal costs in full and not be able to recover them.
The ability to recover legal costs is essential to preventing frivolous lawsuits. If a plaintiff can sue with no downside risk and the defendant can never recover legal fees even when the case is baseless, you create a system where large companies get flooded with nuisance suits simply because they have deep pockets. The ability to recover costs doesn't just protect defendants from nuisance suits, it also protects the integrity and workload of the courts.
Score: 7 Votes (Like | Disagree)
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