Apple wins another iCloud storage lawsuit

A lawsuit accusing Apple of abusing its monopoly to inflate iCloud storage prices has been dismissed.

For 14 years, Apple has provided users with a meager 5GB of free iCloud storage, a figure unlikely to change without external pressure. However, the latest attempt to force such a change has failed.

A class-action lawsuit filed in March 2024 challenging iCloud's storage capacity and pricing has been rejected by US District Judge Eumi Lee in San Jose, California. While the case was dismissed, Reuters reports that the plaintiffs have been given the opportunity to file an amended complaint.

The initial lawsuit claimed Apple violated antitrust laws by compelling users to utilize iCloud and then charging exorbitant fees for sufficient storage. The plaintiffs argued they represented tens of millions of iCloud users.

Judge Lee ruled that Apple did not violate federal or state antitrust laws. She reasoned that users weren't obligated to purchase iCloud storage and that the lawsuit failed to prove Apple holds a monopoly. The judge stated that Apple's pricing might even encourage competitors to increase production and challenge Apple's market share.

The plaintiffs primarily focused on iCloud's storage function, overlooking its crucial role in syncing photos, videos, and other user data—a function not easily replicated by third-party alternatives.

Apple defended its iCloud practices, emphasizing its use for data synchronization and features like iPhone backup restoration, citing security and privacy as key reasons.

The plaintiffs, Julianna Felix Gamboa et al v. Apple Inc., plan to file an amended lawsuit addressing the judge's concerns.

While Apple has won this round, the legal battle may continue with a revised lawsuit. Separately, Apple faces a similar case in the UK, where a consumer group is seeking a $4 billion payout for users.

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