Apple is under legal scrutiny for allegedly monopolizing the cloud services market, with plaintiffs accusing the tech giant of unfairly restricting iPhone and iPad file storage to its iCloud platform (via Bloomberg Law).
This accusation surfaced in a proposed class action filed in the US District Court for the Northern District of California.
According to the complaint, only Apple’s iCloud can accommodate certain data from its devices, such as application data and device settings crucial for device replacement.
This practice, the complaint argues, unjustly binds Apple’s mobile devices with its iCloud service, effectively creating a monopoly.
The complaint estimates that Apple’s iCloud commands approximately 70% of the market share, indicating a dominant position in the industry. The profitability of iCloud is highlighted, with claims that its pricing structure yields substantial profits due to limited competition.
While Apple faces competition from other cloud platforms like Google and Microsoft, the complaint suggests that users find managing multiple accounts cumbersome, particularly for storing non-restricted data like photos.
The proposed class action, led by plaintiff Julianna Felix Gamboa and represented by Hagens Berman Sobol Shapiro LLP, aims to include tens of millions of potential members nationwide, with a California subclass specifically targeting iCloud users who were allegedly overcharged.
The lawsuit aims to bring attention to concerns regarding fair competition and market dominance in the tech industry, particularly concerning essential services like cloud storage.
Apple has yet to respond to requests for comment on the matter.
