Apple could face lawsuit over alleged cloud storage monopoly

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Apple currently limits what iPhone and iPad files can be backed up to services outside of iCloud, and it faces a potential class-action lawsuit as a result, according to Bloomberg Law. The complaint states that “Apple has achieved market dominance by rigging the competitive playing field so that only iCloud can win.” By limiting the kinds of files that can be backed up without iCloud, Apple gives iCloud an “enormous structural advantage against all would-be competitors,” per the filing. The cloud storage lawsuit against Apple was filed in US District Court for the Northern District of California last week.

For those unfamiliar, device storage backups are essential in case your device gets lost, stolen, or damage. They allow you to restore your iPhone or iPad to how it was in the past, without data loss. However, the lawsuit points out that only certain types of Apple device backups can be stored in cloud storage services other than iCloud. Apple requires these “restricted files” to be stored in iCloud. That’s why the suit claims other cloud storage providers aren’t entirely competitive. Rather than use multiple services, the filing claims users stick with iCloud.

“Apple may have achieved its enormous share of the iOS cloud-based storage market by unlawfully tying its iCloud storage platform to its iOS devices,” the lawyers say. The suit also mentions competitors. Samsung, for example, does not restrict backup files. It’s important to note that the restricted files are essential for restoring an iPhone or iPad. They include critical device settings and app details.

“Apple has marked up its iCloud prices to the point where the service is generating almost pure profit,” the lawsuit claims. “Apple’s ability to sustain these prices is a testament to its monopoly power.”

Why the Apple cloud storage lawsuit matters

This lawsuit is merely in the proposal stage, so it’s incredibly early in the class action process. However, if approved, it could have serious implications. Lawyers are asking anyone who paid for iCloud storage in the last few years to fill out a form. That could make for a massive class size. If a large settlement was reached or award was granted, it would be split up among the class members. Essentially, if you’ve paid for iCloud, Apple might have to pay you.

But we can’t state enough that this is an early suit. It would likely take years for the class action to resolve, provided it is not quickly dismissed. With that said, Apple has settled similar cases before.

2024-03-06 15:06:52