Edgar Cervantes/Android Authority
long story short
- A proposed class-action lawsuit accuses Apple of anti-competitive behavior with respect to iCloud.
- The filing said Apple’s monopoly on cloud storage allowed it to raise iCould’s price to the point of generating “nearly pure profit.”
- The lawsuit alleges that the company limits certain file storage to iCloud in an effort to dominate the market.
Apple is currently busy appealing a €1.8 billion ($1.95 billion) fine imposed on it by the European Commission over the App Store’s “anti-pivot” provisions. But that might not be the only legal issue the company has to worry about. A proposed lawsuit claims Apple’s iCloud monopolizes the cloud storage market.
according to Bloomberg, plaintiffs claim in a proposed class action lawsuit that Apple is “manipulating the competitive environment” through its iCloud practices. As a result, the lawsuit claims the tech giant has a monopoly position with a 70% market share.
The filing does not attribute Apple’s dominance to a lack of competition. In fact, it lists some of the biggest companies in the space, such as Microsoft and Google. However, the issue appears to stem from some arbitrary restrictions Apple allegedly imposes on data on its mobile devices.
Specifically, the complaint points to restrictions on the storage of certain iPhone and iPad data, such as app data and device settings, to iCloud. The lawsuit alleges that the Cupertino company did not allow this information to be hosted on other cloud services, which had “illegally ‘bundled'” Apple’s mobile devices to its cloud platform.
“Apple has raised its iCloud prices to the point where the service generates almost pure profit. Apple’s ability to maintain these prices demonstrates its monopoly power,” the lawsuit states.
In addition, the lawsuit also mentions that iPhone users must use iCloud if they want a complete backup of their device. All of this is said to result in iCloud having a “significant structural advantage over all potential competitors.”
The outlet said that if the class action proceeds, a nationwide class action involving tens of millions of members could emerge. It also includes a subcategory of California users who purchased iCloud plans and were overcharged. The plaintiffs asked the court to order Apple to cease its “anticompetitive conduct” and provide declaratory and monetary relief.