U.K. consumer-protection group Which? has filed a £3 billion ($3.82 billion) lawsuit against Apple, accusing the tech giant of breaching competition laws by pushing consumers toward its iCloud storage service. According to the group, Apple leverages its market dominance by nudging iPhone users to register with iCloud for data storage without offering alternatives for backing up with competing providers. The lawsuit alleges this practice unfairly favors Apple's own software, effectively limiting competition in cloud storage options available to users.

Additionally, Which? claims Apple overcharged for iCloud subscriptions. Although the company offers up to 5GB of free storage, customers must pay for added capacity, which the group argues is priced unfairly. Filed in the U.K.'s Competition Appeal Tribunal, the lawsuit seeks compensation for users who have been using iCloud since October 2015. While Apple denies the charges, asserting that iCloud use is optional and data transfer across services is being enhanced, the case underscores the significant role services play in Apple’s revenue, which offers some of its highest profit margins.