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A recently proposed class action lawsuit alleges that Apple has “raised iCloud prices to the point where the service generates almost pure profits.” As first reported Bloomberg LawThe plaintiffs accuse Apple of “manipulating the competitive playing field” by allowing iCloud to only manage device backups and other storage needs.
“Apple device owners receive 5 GB of free iCloud storage space, but as Apple’s iCloud revenue attests, most users find this insufficient for their storage needs and purchase a complementary iCloud storage plan “says the lawsuit.
Infamously, iCloud’s free tier has remained limited to 5GB of storage since Steve Jobs introduced it at WWDC 2011.
Much of the lawsuit’s emphasis is on the fact that iPhone users only have one option when it comes to full device backups, and that option is Apple’s own iCloud service. And iCloud, as we all know, only offers you 5 GB for free.
However, Apple arbitrarily requires owners of its mobile devices to use iCloud to back up certain types of files, primarily device settings, as well as applications and application data (“Restricted Files”). With respect to other types of files, for example, photos and videos (“Accessible Files”), Apple mobile device owners can select from other cloud-based storage providers serving the market, including Google Drive , Sync.com, pCloud and others.
By doing this, the plaintiffs say Apple “prevents rival cloud platforms from offering a full-service cloud solution that can effectively compete against iCloud.” As such, Apple may choose to limit free iCloud storage to 5GB and know that most people will need to subscribe and pay for more storage just to back up their devices.
Apple’s restrictions remove that option and, in doing so, effectively force Apple device owners to use iCloud for cloud storage. Technically speaking, Apple imposes what economists call a “requirements” link. That is, if iPhone or iPad owners want to use cloud storage for restricted files (and most do), iCloud is their only option to meet that requirement. And anyone who needs more than 5GB of storage — that is, most Apple customers — will have to pay for it.
“There is no technological or security justification for Apple to require the use of iCloud for restricted files,” the lawsuit reads. “Apple makes this distinction only to reduce competition and take advantage of its iCloud product over rival cloud platforms.”
The full lawsuit can be found about Bloomberg Law. The lead plaintiff is represented by the Hagens Berman law firm, which is the same law firm behind several different class action lawsuits against Apple. Most notably, the company handled the $560 million Apple Books price-fixing class action lawsuit against Apple.
People who have purchased iCloud storage and are interested in joining the lawsuit can do so through a form on the Hagens Berman Website.
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