Share this @internewscast.com

A class action lawsuit filed in San Jose, California federal court on Friday alleges that Apple’s iCloud storage service keeps important files exclusively within iCloud, which could create an environment that stifles competition and drives prices up for consumers.

The proposed class consists of tens of millions of customers across the country.

Apple offers buyers who purchase its iPhone, iPad, and other hardware free iCloud storage for up to 5 GB of data. After a user hits that cap, they have to subscribe to iCloud+ from their Apple device to keep storing photos, files, backups, and other features — for a monthly fee. In the United States, 50 GB of storage on iCloud+ costs $0.99 per month, all the way up to 12 TB of storage for $59.99 per month.

According to the lawsuit, even though competing cloud providers like Microsoft and Dropbox can host photos and videos taken on Apple devices, Apple blocks them from accessing some restricted files containing app and settings data, which happen to be critical if a user needs to restore their device when it is replaced. So a customer who uses Google’s cloud platform to store their videos would still have to use iCloud to store restricted files.

“As Apple knows, this is an unattractive option,” the lawsuit asserts.

The lawsuit tries to thwart any attempt by Apple to explain that it keeps certain files restricted on the basis of security by pointing out that Apple uses infrastructure from other companies to host iCloud data. For context, iCloud appears to implement similar security measures to Google Drive, and Apple’s iCloud storage tiers are priced similarly to the competition. Meanwhile, 2 TB of iCloud storage goes for $9.99, the same price that Dropbox and Google charge.

The lawsuit pointed to Apple’s 80% profit margins for iCloud, which stand 36% higher than the company’s overall margins, and alleged that “Apple’s restraints can be coherently explained only as an attempt to stifle competition.” Apple’s iCloud produced “almost pure profit” for the company, and was “undisciplined by competition,” according to the lawsuit.

Apple’s services business, which includes subscriptions like iCloud, hit a record high last year and continues to grow. Apple announced in February that it earned $119.6 billion last quarter, up 2% year over year.

“Apple is reporting revenue growth for the December quarter fueled by iPhone sales, and an all-time revenue record in Services,” Tim Cook, Apple’s CEO, stated at the time.

Share this @internewscast.com
You May Also Like

Disneyland Paris Profit Plunge: The Untold Impact of a 30-Year-Old Agreement

Disneyland Paris recently announced a significant dip in its net profits, reporting…

Celtics Reflect on Key Insights Gained from Hugo Gonzalez’s Historic Performance

Detroit — Hugo Gonzalez made history at Little Caesars Arena on Sunday…

Ford Secures £4.6 Billion Pension Buyout with Legal & General: A New Era in UK Retirement Solutions

Stay updated with complimentary updates! Legal & General has secured a substantial…

Former Phillies Draft Pick and Pitcher John Morris Passes Away at 75

John Morris, who once pitched for major league teams including the Philadelphia…

Global Stock Markets Surge Amid Renewed US-China Trade Optimism

Access the Editor’s Digest at no cost Global financial markets have experienced…

Experience the Future: How Viture’s Smart Glasses Outshine Meta’s Latest Tech Demo

Stepping into the future of personal entertainment, video display glasses have finally…

Transforming Education in England: Unveiling the Future of Learning

Unlock the Editor’s Digest for free The author led a panel assessing…

Nine Financial Gurus Share Their Personal Strategies for Safeguarding Wealth in a Market Downturn—and How You Can Apply Them

As concerns about a potential stock market crash persist, many are left…

Why the Philadelphia Eagles’ Iconic Kelly Green Uniforms Deserve a Permanent Comeback

Amidst the Philadelphia Eagles’ triumphant Super Bowl LIX celebration at Caesars Superdome,…