Apple storage class action lawsuit overview:
- Who: Apple is facing a class action lawsuit over its iCloud program.
- Why: The lawsuit accuses Apple of placing limitations on cloud storage competitors that effectively make iCloud a monopoly.
- Where: The class action was filed in federal court in California.
A new Apple class action claims the tech giant unfairly prevents competitors from entering the market for cloud storage on its devices by placing limitations on iCloud competitors.
The restrictions include preventing other cloud storage providers from saving restricted files that are needed to restore a device when it is replaced, the class action claims. This disadvantages programs from Google and Microsoft, along with cloud storage specialists such as Dropbox, Sync.com and IDrive, preventing these services from competing on an even playing field with iCloud, the lawsuit argues.
ICloud holds more than 70% of the marketplace on storage for Apple mobile devices but that is not a reflection of the quality of the service or its security, the lawsuit says.
More than 100 million Americans have an iPhone or iPad and Apple’s gross margins on iCloud are nearly 80%, substantially higher than Apple’s already high gross margins, which are estimated at 40%, according to the lawsuit.
“From a security and functionality standpoint, iCloud is no better (and often inferior) to other cloud storage platforms,” the class action says. “Instead, Apple has achieved market dominance by rigging the competitive playing field so that only iCloud can win.”
No plausible technological justification for restricted files, class action claims
Apple users who select a competing cloud storage service still need iCloud to back up the restricted files needed to restore a device, forcing the users to split cloud services, according to the plaintiff.
“There is no plausible technological or security justification for Apple granting iCloud exclusive access to restricted files,” the lawsuit says.
Apple is able to charge above-market prices for the iPhone due to agreements it put in place to block web-based apps outside the App Store, according to a class action lawsuit filed earlier this year.
Do you use Apple’s iCloud storage? Let us know in the comments.
The plaintiff is represented by Ben M. Harrington, Benjamin J. Siegel and Gayne A. Kalustian-Carrier of Hagens Berman Sobol Shapiro LLP.
The Apple storage class action lawsuit is Gamboa v. Apple Inc., Case No. 5:24-cv-01270, in the U.S. District Court for the Northern District of California.
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90 thoughts onApple class action claims company limits third-party storage services
Everytime i open my photos icloud wants me to buy more storage.
it always keeps going up in price. And we have no control on the service
I have used iCloud on my iPad for years.
Apple iCloud user paying monthly
In pay for family sharing storage
I am forced to pay $10 a month for my storage because what i was given apparently wasnt enough. Add me to this! Ive been with apple for almst 10 years
I have an apple iPhone and pay for iCloud storage
I use iCloud and am forced to pay $10 a month for storage because of the amount of storage I need for my files to be backed up. I would like to be added to this suit.
I’m using apple as we speak
I was with Apple for years. I had a couple different icloud emails set up for different phones.
I’ve been with this company for years a continuous problems
I pay for iCloud storage. I’d like to be added to this