NEWS  Apple  March 5, 2024  Reading time: 2 Minute(s)

Max (RS editor)

Apple finds itself embroiled in yet another legal dispute. The European Commission's recent €1.8 billion fine over the App Store's "anti-steering" provisions is just the tip of the iceberg. Now, a proposed class action lawsuit alleges that Apple's iCloud service holds a monopoly over the cloud storage market, stifling competition and harming consumers.

According to Bloomberg, the plaintiffs in the proposed lawsuit argue that Apple is "rigging the competitive playing field" through its iCloud practices. The suit contends that Apple commands a staggering 70% share of the cloud storage market, giving it undue dominance.

Contrary to attributing Apple's dominance to a lack of competition, the lawsuit acknowledges the presence of other major players like Microsoft and Google in the cloud storage arena. However, it points to certain arbitrary restrictions allegedly imposed by Apple on data from its mobile devices as the crux of the issue.

The complaint highlights Apple's purported practice of restricting the storage of certain iPhone and iPad data, such as application data and device settings, exclusively to iCloud. This, the suit argues, effectively "ties" Apple's mobile devices to its own cloud platform, thwarting competition.

Moreover, the lawsuit contends that Apple has inflated iCloud prices to the extent that the service generates substantial profits, indicative of its monopoly power. The requirement for iPhone users to utilize iCloud for complete device backups further strengthens iCloud's structural advantage against potential competitors.

Should the class action lawsuit proceed, it could encompass a nationwide class comprising tens of millions of members, with a subclass of Californian users who allegedly faced overcharges for iCloud plans. The plaintiffs seek remedies including an injunction to halt Apple's alleged anti-competitive practices, declaratory relief, and monetary compensation.

This legal challenge underscores the increasing scrutiny faced by tech giants over their market dominance and business practices. As Apple navigates these legal waters, the outcome of this lawsuit could have significant ramifications for both the company and the broader tech industry, shaping the landscape of competition and consumer rights in the digital age.

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