Apple hit with lawsuit over cloud storage monopoly

Apple is accused in a new consumer lawsuit of unlawfully monopolizing the market for cloud storage on its mobile devices, forcing the iPhone maker’s customers to pay artificially high prices.

The proposed class action lawsuit, opens new tab, filed on Friday in San Jose, California federal court, said Apple “coerces” its customers into using the company’s iCloud service for storing and backing up certain “restricted” app data and device setting files.

“Cloud Storage on Apple Mobile Devices is a billion-dollar industry that Apple completely dominates today,” the lawsuit said. Apple’s alleged restraints, it said, “can be coherently explained only as an attempt to stifle competition.”

Apple did not immediately respond to a request for comment.

The named plaintiff, a Los Angeles resident, said she was paying $2.99 monthly for an iCloud storage plan. Her lawyers at the class action firm Hagens Berman Sobol Shapiro seek to represent a nationwide class of at least tens of millions of consumers who purchased iCloud storage plans.

Apple’s iCloud storage monthly subscription is free for up to 5 gigabytes of data and then ranges in price according to size.

The lawsuit said Apple has unlawfully “tied” two distinct products, its mobile devices and cloud storage. It is seeking unspecified damages that could be tripled under federal antitrust law.

Apple faces other consumer and business antitrust lawsuits in California and elsewhere challenging various business practices, including over its App Store and Apple Pay mobile wallet.

The case is Julianna Felix Gamboa, U.S. District Court, Northern District of California, No. 5:24-cv-01270.