Apple Inc., the technological behemoth, is facing strong legal headwinds as a proposed class-action lawsuit accuses the firm of exploiting its monopoly over digital storage for its customers. The suit, filed on Friday, charges Apple with creating ”surgical” limitations, effectively compelling users to employ its iCloud storage system over any alternatives.
According to the lawsuit, iCloud is the only service that can host certain data types from the company’s line of phones, tablets, and computers, including application data and device settings. This arrangement is said to have “unlawfully ‘tied'” the devices and iCloud, distorting competition in favor of Apple’s in-house cloud platform.
“Apple’s arbitrary prohibition on hosting Restricted Files fundamentally distorts the competitive landscape to privilege iCloud over all rivals,” says the complaint. It argues that these restrictions make it impossible for other cloud service providers to provide Apple users with a full-service cloud storage solution or even an adequate substitute.
iCloud reportedly enjoys a massive market domination, with about 70 percent of market share in cloud storage for Apple users. The plaintiffs assert that Apple’s monopoly has created an environment where prices can be inflated beyond competitive levels.
“Apple has marked up its iCloud prices to the point where the service is generating almost pure profit. Apple’s ability to sustain these prices is a testament to its monopoly power,” the plaintiffs contend. They propose a nationwide class action with tens of millions of iCloud users who may have been overcharged for the service.
Cloud storage has become an integral part of modern technological convenience, allowing users to store and access data remotely. While Apple does face competition from other tech companies such as Google and Microsoft and niche platforms like Dropbox, Apple’s restrictions make it less appealing for users to adopt divergent cloud systems.
The lead plaintiff, Julianna Felix Gamboa along with a potential class of tens of millions, are represented by Hagens Berman Sobol Shapiro LLP. Apple has yet to respond to the allegations.
RH Information Box:
– Apple Inc. is an American multinational technology company that designs, develops, and sells consumer electronics, computer software, and online services.
– iCloud is a cloud storage and cloud computing service launched by Apple Inc. It provides users with a means to store data such as documents, photos, and music on remote servers for download to iOS, macOS or Windows devices.
– The term “class action lawsuit” implies a legal action where a large group of people collectively brings a claim to court.
– This is not the first time Apple has been accused of monopolistic behaviors. In the past, it has faced similar allegations in areas like eBook pricing.
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