Apple Faces Class Action Lawsuit Alleging Monopoly on Digital Storage
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Lawsuit Claims Apple Suppresses Competition with iCloud Monopoly
Apple, the renowned technology giant, is currently tackling a proposed class action lawsuit that accuses the company of holding an illegal monopoly over digital storage for its customers. The lawsuit, filed on Friday, states that Apple imposes “surgical” restraints, allowing customers to effectively use only the iCloud storage system, creating alleged anticompetitive behavior.
iCloud’s Exclusive Hold on Apple Devices
iCloud, the widely-used storage service provided by Apple, is the only platform that can host specific data from the company’s phones, tablets, and computers. This includes critical application data and device settings. According to the plaintiffs, such a practice unlawfully ties Apple’s devices to the iCloud service, handicapping any cloud storage competitors.
The lawsuit asserts, “Apple’s arbitrary prohibition on hosting Restricted Files fundamentally distorts the competitive landscape to privilege iCloud over all rivals. As a result of this restraint, would-be cloud competitors are unable to offer Apple’s device holders a full-service cloud-storage solution, or even a pale comparison.”
Dominance and Skyrocketing Prices
iCloud currently dominates about 70 percent of the cloud storage market for Apple users, a statistic highlighted within the lawsuit. Plaintiffs also argue that Apple’s significant market share has allowed them to increase prices exponentially, resulting in “undisciplined” pricing unconstrained by industry competition.
The lawsuit states, “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.”
A Class Action Seekng Justice for iCloud Users
The plaintiffs behind the lawsuit propose a class action suit with tens of millions of members, representing all users of Apple’s iCloud platform. This lawsuit will likely shape the landscape in the competition for cloud-storage solutions.
The Hill has reached out to Apple for comment, but as of now, the company has not responded to these allegations.
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