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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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
-
Stocks Keep Climbing as Fed Meeting Nears: Stock Market TodayA stale inflation report and improving consumer sentiment did little to shift expectations for a rate cut next week.
-
Your End of Year Insurance Coverage Review ChecklistStop paying for insurance you don't need and close coverage gaps you didn't know about with this year-end insurance review.
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Your End of Year Insurance Coverage Review Checklist
Stop paying for insurance you don't need and close coverage gaps you didn't know about with this year-end insurance review.
-
I'm an Insurance Pro: If You Do One Boring Task Before the End of the Year, Make It This One (It Could Save You Thousands)Who wants to check insurance policies when there's fun to be had? Still, making sure everything is up to date (coverage and deductibles) can save you a ton.
-
4 Smart Ways Retirees Can Give More to Charity, From a Financial AdviserFor retirees, tax efficiency and charitable giving should go hand in hand. After all, why not maximize your gifts and minimize the amount that goes to the IRS?
-
Should You Tap Your Home Equity Before 2026?As borrowing rates and tax law shifts converge, here's what homeowners need to know before pulling equity out of their home.
-
'Politics' Is a Dirty Word for Some Financial Advisers: 3 Reasons This Financial Planner Vehemently DisagreesYour financial plan should be aligned with your values and your politics. If your adviser refuses to talk about them, it's time to go elsewhere.
-
For a Move Abroad, Choosing a Fiduciary Financial Planner Who Sees Both Sides of the Border Is CriticalWorking with a cross-border financial planner is essential to integrate tax, estate and visa considerations and avoid costly, unexpected liabilities.
-
21 Money Moves Smart People Are Making Before 2026These steps can help trim your tax bill, boost your savings, lower your health care costs and set you up for financial success in 2026.
-
A Financial Adviser's Guide to Divorce Finalization: Tying Up the Loose EndsAfter signing the divorce agreement, you'll need to tackle the administrative work that will allow you to start over.
