Proposed class action lawsuit alleges Apple monopolizing cloud storage for its devices
Apple faces a proposed class action lawsuit alleging the company holds an illegal monopoly over digital storage for its customers.
The suit, filed Friday, claims “surgical” restraints prevent customers from effectively using any service except its iCloud storage system.
iCloud is the only service that can host certain data from the company’s phones, tablets and computers, including application data and device settings. Plaintiffs allege the practice has “unlawfully ‘tied’” the devices and iCloud together.
“Apple’s arbitrary prohibition on hosting Restricted Files fundamentally distorts the competitive landscape to privilege iCloud over all rivals,” the suit reads. “As a result of this restraint, would-be cloud competitors are unable to offer Apple’s device holders a full-service cloud-storage solution, or even a pale comparison.”
iCloud enjoys about 70 percent market share in cloud storage for Apple users, according to the suit. Plaintiffs also noted that the high market share has allowed prices to skyrocket, marking it “undisciplined by competition.”
“Apple has marked up its iCloud prices to the point where the service is generating almost pure profit. Apple’s ability to sustain these prices is a testament to its monopoly power,” the suit said.
The plaintiffs propose a class action suit with tens of millions of members, all iCloud platform users.
The Hill has reached out to Apple for comment.