Apple Moves to Dismiss iCloud Antitrust Class Action Lawsuit

Apple has asked a California federal judge to dismiss a class action lawsuit that accuses the company of unfairly restricting cloud storage competitors on its devices, effectively making iCloud a monopoly.

The tech giant filed a motion to dismiss the lawsuit on Aug. 16, arguing that the plaintiffs’ claims under the Sherman Act and California’s unfair competition laws are legally flawed and time-barred.

Apple iCloud Class Action Overview

Who: Apple is facing a class action lawsuit over its iCloud program.

Why: The lawsuit alleges Apple imposes limitations on cloud storage competitors, giving iCloud an unfair advantage.

Where: The class action was filed in federal court in California.

Allegations Against Apple

The lawsuit claims Apple prevents other cloud storage providers from saving restricted files that are necessary for restoring a device. This allegedly forces users to rely on iCloud, disadvantaging competitors such as Google Drive, Microsoft OneDrive, Dropbox, Sync.com, and IDrive.

According to the complaint, iCloud holds more than 70% of the market share for Apple mobile device storage, but this dominance is not due to superior quality or security. Instead, the plaintiffs argue Apple has “rigged the competitive playing field” to ensure iCloud’s success.

Apple Allegedly Forces Users to Split Cloud Services

The lawsuit contends that Apple users who opt for a competing cloud storage provider must still use iCloud to back up certain restricted files, preventing a full switch to another service.

“There is no plausible technological or security justification for Apple granting iCloud exclusive access to restricted files,” the lawsuit states.

Apple’s iCloud storage service reportedly generates gross margins of nearly 80%, significantly higher than Apple’s overall estimated gross margin of 40%, according to the complaint.

Case Information

The Apple iCloud class action lawsuit is Gamboa v. Apple Inc., Case No. 5:24-cv-01270, in the U.S. District Court for the Northern District of California.