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The new proposed class action lawsuit alleges that Apple “raised iCloud prices to the point where the service is almost purely profit-making.” As first reported bloomberg legalThe plaintiffs accused Apple of “manipulating its competitive advantage” by allowing only iCloud to manage device backups and other storage needs.
“Owners of Apple devices are provided with 5GB of free iCloud storage, but as Apple’s iCloud revenue demonstrates, most users find this insufficient for their storage needs and purchase additional iCloud storage plans,” the lawsuit states. said the lawsuit.
Notoriously, iCloud's free tier has been limited to 5GB of storage ever since Steve Jobs introduced it at WWDC 2011.
What the lawsuit highlights is that iPhone users have only one option when it comes to backing up their entire device, and that option is Apple's own iCloud service.
Nonetheless, Apple arbitrarily requires mobile device owners to use iCloud to back up certain file types, primarily device settings and apps and app data (“restricted files”). When it comes to other file types, such as photos and videos (“accessible files”), owners of Apple mobile devices can choose from other cloud-based storage providers serving the market, including Google Drive, Sync.com, pCloud, and others. there is.
By doing this, the plaintiffs say Apple “prevents competing cloud platforms from offering full-service cloud solutions that can compete effectively with iCloud.” So Apple could choose to limit free iCloud storage to 5GB, knowing that most people would have to subscribe and pay for more storage to back up their devices.
Apple's restrictions take away that choice and, in doing so, effectively force Apple device owners to use iCloud for cloud storage. Technically speaking, Apple imposes what economists call a “requirement” relationship. This means that if an iPhone or iPad owner wants to use cloud storage for limited files (which is most cases), iCloud is the only option that can meet that need. And anyone who needs more than 5GB of storage space, i.e. most Apple customers, will have to pay for it.
“There is no technical or security justification for Apple to mandate the use of iCloud for Restricted Files,” the lawsuit states. “Apple applies this distinction to reduce competition and give its iCloud product an advantage over competing cloud platforms.”
The full lawsuit can be found here: bloomberg legal. The lead plaintiff is represented by the Hagens Berman law firm, the same law firm behind various class action lawsuits against Apple. Most notable is the company's $560 million class action lawsuit against Apple over Apple Books price-fixing.
People who have purchased iCloud storage and potentially want to join the lawsuit can do so through a form on Hagens Berman's website.
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