Apple is facing yet another legal challenge as a proposed class action lawsuit accuses the tech giant of antitrust violations related to its iCloud service. The lawsuit alleges that Apple has been using its dominant 70% share of the cloud platform market to artificially inflate iCloud prices, resulting in almost pure profit for the company. This has led to claims of Apple’s monopoly power in the cloud storage industry.
The proposed class action lawsuit, which could potentially include tens of millions of users nationwide, focuses on customers who purchased iCloud plans and were allegedly overcharged. Cloud storage, essential for remote data storage and access, has become a crucial service for many technology users.
Despite the presence of competitors like Google, Microsoft, and Dropbox in the cloud storage market, the lawsuit points out that certain data known as Restricted Files can only be stored on iCloud. These files are crucial for device restoration, giving iCloud a significant advantage over its rivals.
One key issue highlighted in the lawsuit is that iPhone users are limited to using iCloud for complete device backups, as Apple has maintained the 5GB free storage limit since introducing the service in 2011. This lack of flexibility has been cited as a barrier to competition in the cloud storage industry.
The plaintiffs are seeking injunctive relief to stop what they perceive as anti-competitive practices by Apple, along with declaratory and monetary relief. If the case proceeds to settlement negotiations, Apple may opt to resolve it out of court as it has done with previous legal challenges.
As this legal battle unfolds, it remains to be seen how Apple will respond and whether any changes will be made to its iCloud pricing and policies. Stay tuned for further developments on this case.