Apple has taken aim at the funding behind UK consumer group Which's $2 billion App Store ruling, insisting to the Competition Appeals Tribunal that Which's third-party funding source's troubles could be an issue.

On November 13, the UK's Competition Appeals Tribunal refused to grant Apple an appeal against the $2 billion ruling over the App Store. Even so, Apple is still going down swinging in the tribunal hearing.

During a collective proceedings order application hearing on Wednesday, Apple has attacked the lack of transparency of a class representative. Specifically, it has attacked the funding of the class action suit brought forward by consumer group Which itself.

Funding feud

The main thrust is against Litigation Capital Management, a firm that has funded the claim. While a sizable funding source, Apple raised concerns that LCM may not have been able to adequately cover the costs involved in litigation on the plaintiff's side.

It's also a problem that, if Apple could actually be allowed to appeal, whether LCM would be able to cover Apple's costs if Apple is successful. Apple would therefore be at a litigation risk, in that it may not be able to recover its costs if it wins.

The claim arrives as the Sydney-based but London-listed company suffered a crash in value in early October, following a number of courtroom defeats. According to the Association of Investment Companies on October 1, LCM's value had dropped 99% from its valuation in November 2024, with an overall value of a mere 12 million pounds ($15.7 million)

Apple and the Proposed Class Representative should have been informed about LCM's status and capability to adequately fund the legal action, with far more transparency than what actually occurred. It is also argued by Apple that the PCR should have made more of an effort to question the financing from LCM in the first place.

There is also the issue of LCM pulling out of funding a continued appeal process. This would again would leave PCR without backing, and no way to cover Apple's costs.

Apple has already lost and will face costs. However, it also faces the prospect that, if it is allowed to actually conduct an appeal, it could be doing so with the very real prospect of not being able to recover its own costs.

There is also the question of whether there would be any adjustment to how much is paid back to consumers, due to the LCM financial issues.

Arguing continues

The hearing is a continuation of arguments between Apple and Which over iCloud and how it charged consumers in the UK since 2015 for online storage.

According to Which, Apple "abused its position, stifling competition, and ripping off millions of customers in the process." The hearing is a "significant milestone in the battle for more choice in the consumer cloud market," and an "essential step" in the process.

In a statement to AppleInsider, Apple calls the claims "unfounded." While Apple works to make iCloud "a great experience," it adds that "no customer is required to use it and customers in the UK have plenty of alternatives to choose from."

The hearing will take place over two or three days, ending on Friday at the latest.