Posted by Nathaniel Vojt.
Apple is facing a lawsuit over their monopoly over cloud storage for Apple devices. Certain files are restricted to only being stored via Apple’s iCloud platform. Only iCloud can host some data from Apple’s devices including application data and device settings that users need to access when they replace their device. Cloud storage allows users to store and access data remotely.
As a result, iCloud controls the market with an estimated 70% share. iCloud is among Apple’s most profitable products/services, producing higher margins than its other products because it has been “undisciplined by competition.” Apple has marked up its prices so high that iCloud is generating almost pure profit. This is a testament to Apple’s monopoly power.
According to the complaint this practice has “unlawfully tied” Apple’s mobile devices and iCloud together, the complaint says. Apple does have cloud platform competitors, the complaint said, pointing to technology companies such as Alphabet Inc.’s Google and Microsoft Corp, as well as specialists like Dropbox Inc. However, juggling multiple cloud accounts with different interfaces to store non-restricted data, such as photos, is an “unattractive option” for users, the suit said.
Nathaniel is a student at Seton Hall University, Class of 2026.
The case is Gamboa v. Apple Inc., N.D. Cal., No. 5:24-cv-01270, 3/1/24. Link to lawsuit on Bloomberg website: https://www.bloomberglaw.com/public/desktop/document/FelixGamboavAppleIncDocketNo524cv01270NDCalMar012024CourtDocket?doc_id=X4LCILN1RHR81IRG50GNOAUM9P2Links to an external site.