Apple is facing a class action lawsuit that accuses the tech giant of monopolizing the cloud storage market and overcharging customers for its iCloud service. The lawsuit alleges that Apple has “marked up its iCloud prices to the point where the service is generating almost pure profit.” According to Bloomberg Law, the plaintiffs claim that Apple has rigged the competitive playing field by only allowing iCloud to manage device backups and other storage needs.
The lawsuit highlights the fact that iPhone users have no alternative when it comes to full device backups, as Apple’s iCloud service is the only option available. While Apple provides 5GB of free iCloud storage space, most users find this insufficient for their storage needs and end up purchasing additional storage plans. This limitation on free storage has remained unchanged since it was introduced by Steve Jobs at WWDC 2011.
The plaintiffs argue that Apple’s requirement for users to use iCloud for certain file types, such as device settings and apps data, prevents rival cloud platforms from offering a full-service solution that can effectively compete against iCloud. This restriction forces Apple device holders to use iCloud for cloud storage, creating what economists refer to as a “requirements” tie. In other words, if users want to back up Restricted Files, they have no choice but to use iCloud. This compels most Apple customers, who require more than 5GB of storage, to pay for additional storage.
The lawsuit claims that there is no technological or security justification for Apple mandating the use of iCloud for Restricted Files. It argues that Apple draws this distinction solely to limit competition and give its iCloud product an advantage over rival cloud platforms. The lead plaintiff in the case is being represented by the Hagens Berman law firm, which has previously handled class action lawsuits against Apple, including the $560 million Apple Books price fixing lawsuit.
If you have purchased iCloud storage and are interested in joining the lawsuit, you can do so by filling out a form on the Hagens Berman website. This lawsuit raises important questions about Apple’s control over the cloud storage market and the alleged monopolistic practices that may be at play. It remains to be seen how the case will unfold and what implications it may have for Apple and its iCloud service.
Sources: Bloomberg Law, Hagens Berman
