Sean Jackson
Apple is at the center of multiple lawsuits which claim the company holds an illegal monopoly over cloud storage.
The first one, in a complaint filed in a federal court on Friday (March 1), a California law firm alleges that Apple is making it unreasonably difficult to use cloud storage systems other than its in-house iCloud service, charging what the firm calls “supracompetitive fees” and affecting tens of millions of iCloud users.
The complaint is still in its early stages, and it’s unclear whether it will move forward. However, the suit says it believes “the class will consist of tens of millions of members,” all iCloud users. If you purchased an iCloud storage plan in the last four years, you can fill out a form at the law firm’s site to learn more about its investigation into Apple’s iCloud policies.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
More recently, the UK consumer watchdog Which? also filed a $3.75 billion antitrust lawsuit in which it accuses Apple of violating the United Kingdom's competition law by forcing Apple users to use iCloud. This lawsuit could affect up to 40 million Apple users dating back to on or after October 1, 2015. If you believe you were one of them, you can fill out the eligibility form. If the lawsuit is successful, the average Apple user could recoup £70 on average.
Apple did not immediately respond to requests for comment.
“Undisciplined by competition, Apple has marked up its iCloud prices to the point where the service is generating almost pure profit,” the suit says. “Apple’s ability to sustain these prices is a testament to its monopoly power.”
While several companies provide cloud storage solutions for photos, videos and documents, the suit charges that Apple blocks third-party cloud storage systems from hosting app data and device settings, which makes it difficult for users to access necessary information when they replace or update their phones.
That, per the suit, forces users to either juggle two cloud storage systems — one for photos and videos, and another for app data and settings — or exclusively use iCloud.
“This is far less convenient than using a single cloud storage service capable of storing all file types in one location,” according to the suit. “Through the restraints challenged in this lawsuit, Apple has ensured that only iCloud can perform this basic function.”
iCloud, Google Cloud, Dropbox monthly fees similar
Two terabytes of iCloud storage costs $9.99 a month, which is equivalent to a Google One subscription or a Dropbox one. The suits allege Apple marks up storage by as much as 61%, since it buys storage from Google.
For Apple, the storage app has quietly been part of a profit-making machine. Apple could reach $4 trillion market share by the end of the year, according to Wedbush’s Daniel Ives.
It’s worth noting its App Store division is facing antitrust accusations from the U.S. and beyond. In addition, the European Union earlier today (March 4) slapped Apple with a $2 billion antitrust lawsuit for “abusing” the app store.
What happens next?
Separately, iPhone users began receiving settlement money from Apple earlier this year following a battery slowdown lawsuit in 2018. Claimants are expected to receive a cash settlement of $92.17 per device.
In the iCloud cases, once the complaints are filed, a class representative will file a motion to have the courts determine whether it should approve the classes and complaints.
As Kiplinger previously reported, if you think you may be a class member in a suit but haven’t been contacted, there are several websites, such as www.consumer-action.org, offer information on current cases and settlements.
RELATED CONTENT
-
The ‘First Year of Retirement’ RuleThe 'first year of retirement' rule says the 12 months after you leave work set the tone for your entire later life — so it's vital to approach them mindfully.
-
Tech Stocks Drag This Growth Fund DownA rough stretch for mega-cap tech and tech-adjacent names has put pressure on this Mairs & Powers mutual fund.
-
My First $1 Million: Retired International Finance Director, 68, AtlantaEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Student Loan Delinquencies Are Hurting Credit Scores — Even for Parents and GrandparentsMillions of borrowers are falling behind on student loan payments, triggering steep credit score drops. If you or your family carry student debt, here's what you need to know now.
-
Costco Offers Executive Members A New Shopping PerkCostco executive members can shop in store one hour earlier, starting on June 30.
-
Seven Financial Tools You Need to Manage Your Small BusinessFrom a business bank account to tax software, these are the essential tools you need to manage your business finances.
-
Is Your Home Disaster-Ready? An Insurance Expert's Guide to Preparing for Storms and FiresHomeowners can take these steps to protect their properties from hurricanes, tornadoes, wildfires and hail, while also potentially reducing their insurance costs.
-
Beyond 401(k)s: How Millennials Are Ditching Gen X Retirement Strategies. Will It Pay Off?Sorry, Gen X, when it comes to saving for retirement, the younger generation views it differently.
-
A Financial Adviser's Defense of Annuities: They're Just MisunderstoodAnnuities can offer retirement income stability and security against market volatility, though some do have drawbacks. The key is to understand their features before buying.
-
How My Dad Taught Me the Compounding Returns of FatherhoodAs Father's Day approaches, I remember how my father's small acts of love and generosity added up over time and influenced my relationships with my own children, proving that the best investments can grow across generations.
