In a recent consumer lawsuit, Apple is accused of engaging in unlawful monopolistic practices within the mobile device cloud storage market, allegedly leading its customers to pay artificially inflated prices. Filed on Friday in a San Jose federal court in California, the proposed class action lawsuit contends that Apple compels its users to utilize the company’s iCloud service for storing specific “restricted” app data and device setting files.
The lawsuit emphasizes that Apple’s dominance in the billion-dollar industry of Cloud Storage on its mobile devices appears to be achieved through coercive tactics. It claims that Apple’s restrictions on alternative services can only be reasonably interpreted as an effort to stifle competition. As of now, Apple has not responded to requests for comments on the matter.
The primary plaintiff, a resident of Los Angeles, details her payment of $2.99 per month for an iCloud storage plan. Attorneys from the class action firm Hagens Berman Sobol Shapiro, representing the plaintiff, aim to represent a nationwide class encompassing tens of millions of consumers who have purchased iCloud storage plans.
Apple’s iCloud storage subscription offers a free tier for up to 5 gigabytes of data, with pricing varying based on storage size. The lawsuit argues that Apple has illicitly “tied” two distinct products – its mobile devices and cloud storage – and seeks unspecified damages, potentially tripled under federal antitrust law.
This legal action is part of a broader context where Apple faces additional antitrust lawsuits from consumers and businesses, challenging various business practices, including those related to the App Store and Apple Pay mobile wallet. The case is filed as Julianna Felix Gamboa v. Apple Inc., U.S. District Court, Northern District of California, No. 5:24-cv-01270.
