Apple Inc. (AAPL) is facing a proposed class-action lawsuit that accuses the tech giant of monopolizing digital storage for its customers. Filed in the Northern District of California, the lawsuit claims that Apple is imposing restrictive practices that limit customers’ ability to effectively use any service except its iCloud storage system.
According to the lawsuit, iCloud is the only service that can host certain data from Apple’s phones, tablets, and computers, including application data and device settings. The plaintiffs argue that this practice unlawfully ties the devices and iCloud together, preventing potential competitors from offering a full-service cloud storage solution to Apple’s device holders.
The lawsuit also alleges that Apple’s arbitrary prohibition on hosting Restricted Files distorts the competitive landscape, favoring iCloud over all rivals. This, in turn, has led to skyrocketing prices that are undisciplined by competition, as iCloud holds approximately 70% of the market share in cloud storage for Apple users.
The plaintiffs are proposing a class-action suit with tens of millions of members, all of whom are iCloud platform users. This lawsuit is the latest in a series of legal challenges against Apple’s alleged monopolistic practices, following a $1 billion lawsuit in the UK over its App Store fees and Epic Games’ $700 million antitrust victory against Google.
With Apple’s dominance in the cloud storage market, the lawsuit raises concerns about the tech giant’s pricing practices and its impact on competition. As the legal battle unfolds, it will be interesting to see how Apple responds to these allegations and how it could potentially reshape the digital storage landscape for its customers.
