Apple Faces Antitrust Class Action Alleging iCloud Monopoly, Lawsuit Claims iCloud Prices Are Inflated

Introduction

A class action lawsuit has been filed against Apple, alleging that the tech giant has monopolized the cloud storage market with its iCloud service while generating substantial profits by marking up its iCloud prices. The lawsuit claims that Apple is unfairly restricting competition by compelling iPhone users to solely rely on iCloud for full device backups and storage, providing only 5GB of free storage. The plaintiffs argue that this forces users to purchase additional storage plans, driving up Apple’s revenues.

Apple Accused of Rigging the Competitive Playing Field

The lawsuit, revealed by a Bloomberg Law report, highlights the plaintiffs’ claims that Apple intentionally limits the free tier of iCloud storage to 5GB, despite the increasing storage needs of users. The lawsuit emphasizes that iPhone users are deprived of alternative options for device backups, with Apple’s iCloud service being the only choice, therefore monopolizing the market. The plaintiffs argue that this market dominance allows Apple to charge customers for additional storage plans.

Apple’s Storage Requirements Tie

The lawsuit alleges that Apple arbitrarily mandates the use of iCloud for backing up certain file types, such as device settings and apps, which are termed “Restricted Files.” In contrast, iOS users have the freedom to select other providers, including Google Drive, for file types such as photos and videos, known as “Accessible Files.” The plaintiffs argue that Apple’s regulations create a “requirements” tie, effectively compelling iPhone and iPad holders to subscribe to iCloud for managing “Restricted Files” storage, benefiting Apple’s iCloud over its competitors.

Eliminating Choice and Curbing Competition

There is no technological or security justification for Apple mandating the use of iCloud for Restricted Files,” state the plaintiffs. “Apple draws this distinction only to curtail competition and advantage its iCloud product over rival cloud platforms.

The plaintiffs argue that Apple’s actions eliminate consumer choice, curbing competition and creating a market advantage for iCloud over rival cloud platforms. By consistently offering only 5GB of free storage and necessitating paid subscriptions for users requiring more storage, Apple controls the cloud storage market and inhibits the growth of competing services.

Hagens Berman Leads the Legal Battle

The proposed class action lawsuit is being led by the Hagens Berman law firm, which has a history of handling class action lawsuits against Apple. The firm previously represented plaintiffs in the Apple Books price fixing case, in which Apple eventually paid $560 million in class action settlements. Individuals who have purchased iCloud storage and are interested in joining the current lawsuit can fill out a form on the Hagens Berman website.

Conclusion

The lawsuit against Apple accusing the tech giant of monopolizing the cloud storage market through iCloud and inflating prices could have significant implications. If successful, the case could force changes to Apple’s iCloud services and potentially lead to a more competitive cloud storage market. As the class action lawsuit progresses, the outcomes and implications for Apple and its customers will be closely observed.

Source

For more information on the lawsuit, please visit Bloomberg Law.