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

FIFA, Formula 1, ICC Criticized Over Aramco Sponsorships

Aramco has been the title sponsor of the Aston Martin Formula One…

Erin Burnett Reflects on 14 Years with CNN

CNN anchor Erin Burnett CNN There was a time, years ago, when…

Balanced Mariners Lineup Might Prove Too Much for Detroit Tigers

SEATTLE, WA – SEPTEMBER 28: Cal Raleigh #29 of the Seattle Mariners…

“No State Funds for Universities Submitting to Trump’s Demands”

Topline Gov. Gavin Newsom, D-Calif., said Thursday that California will cut funding…

Mira Murati’s Lab Launches Innovative AI Tinker Tool: Handy but Not a Game-Changer

AI startup Thinking Machine Labs releases its first-ever product called Tinker and…

Clues and Solutions for Today’s NYT Mini Crossword – Friday, October 3rd

Looking for help with today’s NYT Mini Crossword puzzle? Here are some…

Standoff Continues Between Trump and Democrats Over Government Funding Amid Ongoing Shutdown

Unlock the White House Watch newsletter for free The confrontation between Donald…