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

Who Do We Rely On? Insights from Recent Poll Results

Whom do you trust when it matters? A surprising number of polls…

Could Liverpool Benefit from Signing the Departing Manchester City Legend?

LONDON, ENGLAND – MAY 17: Kevin De Bruyne of Manchester City after…

U.S. Borrowing Rates Exceed 5% Following Moody’s Credit Rating Downgrade

Unlock the White House Watch newsletter for free US long-term borrowing costs…

Shemar Moore Returns as ‘Hondo’ Harrelson in Upcoming Role Revival

LOS ANGELES – Pictured: Shemar Moore as Daniel “Hondo” Harrelson. (Photo by…

Lauren James Aims to Revitalize Soccer Before Euro 2025

England and Chelsea star Lauren James prepares to shoot Pepsi’s ‘Refresh The…

Safeguarding Your Business Against Deepfake Fraud

Opinions expressed by Entrepreneur contributors are their own. In January 2024, a…

Report: Development of 12 New Towns in England Could Reach £48 Billion

Unlock the Editor’s Digest for free Plans for developing a dozen new…

Four British Stocks Poised for Growth: A MIDAS Share Tip

Just four weeks ago Midas recommended pawnbroker H&T. At £3.82, the shares…

Yankees Appreciate Cody Bellinger’s Role in a Subway Series Highlighted by Juan Soto’s Comeback

New York Yankees’ Cody Bellinger gestures as he runs the bases after…

How 8 Years in Corporate Life Equipped and Didn’t Equip Me for Founding

Opinions expressed by Entrepreneur contributors are their own. As a consultant, chaos…