Apple faces potential class action suit over "anti-competitive" iCloud

Apple faces potential class action suit over “anti-competitive” iCloud،

As if Apple didn't have enough lawsuits to juggle, a proposed class action (via Bloomberg) accuses the tech giant of more antitrust violations. This time, Apple is accused of “rigging the rules of the competitive game” by using its dominant 70% share of the cloud platform market that it has thanks to iCloud. The suit states: “Apple has raised its iCloud prices to the point where the service generates almost pure profit. Apple's ability to maintain these prices is a testament to its monopoly power. »

Bloomberg notes that the proposed class action would include a national class and a California subclass made up of those who purchased iCloud plans and were overcharged. In total, the group's membership could reach tens of millions of users. Cloud storage is digital data held on off-site servers and allows users to store and access their data remotely.

The filing notes that Apple's dominance in cloud storage is not due to a lack of competitors. The suit states that “cloud storage is offered by every major technology company.” The suit names Google, Microsoft and Dropbox as competitors. But the problem is that some data listed as restricted files are prohibited from any cloud service except iCloud. The filing adds: “These sequestered files – hereinafter “restricted files” – are important because they include data necessary to restore a device when it is replaced.

Illustration in court filing that compares Apple's company-wide margins (L) with the huge margins on iCloud subscriptions

The suit then points out that iCloud is the only option iPhone users have when they want to take a full backup of their Apple device. Apple hasn't budged on the 5GB of free cloud storage that iCloud subscribers receive since the service was introduced by the late Steve Jobs at WWDC 2011.

The filing states: “Apple's arbitrary ban on hosting restricted files fundamentally distorts the competitive landscape to favor iCloud over all of its competitors. Due to this restriction, potential cloud competitors are unable to offer Apple device owners a full-service cloud storage solution. , or even a pale comparison. Of course, competitors can host photos, videos and some other data files. But they cannot accommodate all the data that users want to back up, including for device recovery.

The lawsuit goes on to say: “This gives iCloud a huge structural advantage over all potential competitors. A consumer who uses a competing cloud platform to store photos will still need iCloud for restricted file storage. ” The plaintiffs ask the court to grant them “an injunction requiring Apple to cease the abusive, illegal and anticompetitive practices described herein; damages, or other multiple or punitive damages, or restitution, where required by law or equity or otherwise available…”

Apple could end up seeking to settle the matter as it often does. The judge would have to accept the settlement and approve how the settlement funds would be distributed. We're just at the beginning, stay tuned.