2024 iCloud Lawsuit Says Consumers Have Been Overcharged Due to Apple Monopoly on Cloud Storage Market

A new proposed class action lawsuit alleges Apple’s iCloud has come to dominate the cloud storage market due to the tech behemoth having “rig[ged] the competitive playing field,” causing millions of consumers to overpay for the service by blocking rival platforms from accessing critical device restoration files.

The 40-page Apple class action lawsuit says the company’s dominance in the cloud-storage game is not because it has built a superior product, but because it “arbitrarily sequesters” certain crucial app data and device settings files so they cannot be accessed by any cloud storage product other than iCloud. These so-called “restricted files” are essential because they include certain backup data needed to restore a device when it is replaced, the filing stresses.

According to the antitrust complaint, Apple’s “arbitrary prohibition” on hosting restricted files unfairly tilts the competitive landscape in iCloud’s favor—to the detriment of DropBox, Sync, IDrive and other would-be rivals.

“[W]ould-be cloud competitors are unable to offer Apple’s device holders a full-service cloud-storage solution, or even a pale comparison,” the case summarizes. “Sure, rivals can host photos, videos, and certain other data files. But they cannot host all of the data users want to back up, including for device restoration.”

The foregoing gives iCloud a tremendous leg up on competitors, as consumers who use other cloud storage platforms are left still needing iCloud to access the restricted device backup files, the class action lawsuit contends. Per the case, Apple knows that this arrangement is not ideal for users, as it requires “juggling multiple cloud accounts with multiple interfaces and splitting files between them.”

“This is far less convenient than using a single cloud storage service capable of storing all file types in one location,” the complaint reads, accusing Apple of having ensured through anticompetitive tactics, and without any technological or cybersecurity justification, that only iCloud can host every file type a user might need.

The lawsuit goes on to allege that Apple, with iCloud’s market dominance secure, charges consumers “supracompetitive fees” for iCloud subscriptions, which are marked up “to the point where the service is generating almost pure profit,” the filing claims.

Ultimately, the lawsuit charges that Apple’s monopolization of the cloud storage market has forced consumers nationwide to pay more for iCloud plans than they would have “absent Apple’s alleged tying and monopolization conduct.” The case adds that iCloud subscribers are also “likely to incur future overcharges” upon renewing their subscriptions due to Apple’s alleged actions.

No tech reason to “tie” iCloud to Apple devices, suit argues

The lawsuit contends that there exist no technological or security reasons for Apple to tie iCloud to iPhones and iPads, particularly since the same storage infrastructure is necessary to back up any manner of files and data stored on Apple devices. Nevertheless, Apple “arbitrarily” requires iPhone and iPad owners to use iCloud to back up device settings and app data files, while photos, videos and other file types can be stored on any cloud storage platform they wish, the complaint relays.

The case emphasizes that backing up the “restricted files” at issue is important since these files allow a user to restore the apps, settings and overall “look and feel” of their device should they do a factory reset or buy a new one.

“By sequestering Restricted Files, and denying all other cloud providers access to them, Apple prevents rival cloud platforms from offering a full-service cloud solution that can compete effectively against iCloud,” the complaint states, calling competing cloud storage products “fundamentally diminished” due to Apple’s alleged file restraints.

More broadly, the filing alleges Apple has effectively compelled iPhone and iPad users to use iCloud for storage by making the platform the only option for housing critical device backup data.

“Absent Apple’s restrictions, any rival cloud platform could host Restricted Files and consumers would have the option of choosing between iCloud and such rival platforms for all of their cloud-storage needs,” the suit says.

Who’s covered by the 2024 Apple iCloud lawsuit?

The proposed Apple class action lawsuit looks to cover all persons and entities who, as United States residents, bought any iCloud plan to store any iPhone or iPad data from March 1, 2020 through the date notice is sent to proposed class members.

I have bought an iCloud plan. How do I join the lawsuit?

There’s usually nothing you need to do to join, sign up for, or add your name to a proposed class action case when it is initially filed. The time for action for a “class member” covered by the case typically comes in the event of a class action settlement, when it might be necessary to fill out and file a claim form for compensation.

ClassAction.org will update this page with any developments in the new Apple iCloud lawsuit.

Get class action lawsuit news sent to your inbox – sign up for ClassAction.org’s free weekly newsletter here.