A class action lawsuit filed in San Jose, California A federal court on Friday argues that Apple’s iCloud storage service keeps important files exclusively within iCloud, which could create an environment that stifles competition and drives up prices for consumers.
The proposed class consists of tens of millions of customers across the country.
Apple is offering buyers who purchase its iPhone, iPad and other free iCloud storage for up to 5GB of data. After a user reaches this limit, they must subscribe to iCloud+ from their Apple device to continue storing photos, files, backups and other features, paying a monthly fee. In the US, 50GB of iCloud+ storage costs $0.99 per month, up to 12TB of storage for $59.99 per month.
According to the lawsuit, although competing cloud providers such as Microsoft and Dropbox can host photos and videos taken on Apple devices, Apple prevents them from accessing certain sensitive files containing app and settings data, which is critical if a user has need to reset your device. device when it is replaced. Therefore, a customer who uses Google’s cloud platform to store their videos should still use iCloud to store restricted files.
“As Apple knows, this is an unattractive option,” the lawsuit states.
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The indictment seeks to counter any attempt by Apple to explain that it keeps certain files restricted for security reasons by pointing out that Apple uses other companies’ infrastructure 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 its competitors. Meanwhile, 2TB of iCloud storage costs $9.99, the same price charged by Dropbox and Google.
The lawsuit pointed to Apple’s 80% profit margins for iCloud, which are 36% higher than the company’s overall margins, and said that “Apple’s restrictions can only be consistently explained as an attempt to stifle competition”. According to the indictment, Apple’s iCloud produced “almost pure profits” for the company and was “undisciplined by the competition.”
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Apple’s services business, which includes subscriptions like iCloud, reached a record high last year and continues to grow. Apple announced in February that it earned $119.6 billion in the latest 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 the services sector,” Apple CEO Tim Cook said at the time.