Apple’s Priciest Upload Yet 

Posted by Maya Winczura.

Apple has found themselves at the center of countless lawsuits over the years but their latest is known as Gamboa v. Apple Inc. This is an antitrust class action lawsuit filed against Apple accusing them of running a monopoly for their iCloud service. iCloud, a paid service that allows Apple users to store their data and access it from anywhere, has surprisingly become the company’s most profitable product, offering several plans for users to choose from depending on how much storage is needed. 

Despite having various competitors, like Google and DropBox, iCloud is facing these accusations because plaintiff Julianna Felix Gamboa and her lawsuit claims that, “juggling multiple cloud accounts with different interfaces to store non-restricted data, such as photos, is an ‘unattractive option’ for users.” Apple knows this so they have raised their prices for the cloud so much that they are bringing in “pure profit,” with a 70% share. The logic behind the accused monopoly is that if the company is able to very successfully sustain these prices, they must have a significant lead over their competitors. 

The main point being raised in this case is that much of the data found on Apple’s other products like iPhones, iPads, and Macs, can only be transferred using Apple’s own cloud sharing service which, as the article states,  “unlawfully ties,” iCloud and their other products together. Some of those files include data that is necessary for users to have access to when changing their device. Essentially, if someone wants to store all of their important and personal files taken on an Apple product, they can only use Apple’s service to guarantee that all of it will transfer. This would arguably not be as big of a deal if people did not have to pay extra to utilize it, on top of the already expensive devices they purchased, in comparison to competitor prices. This is not Apple’s first lawsuit regarding iCloud but the results of this case would potentially affect tens of millions of Apple customers. 

Maya is a dual marketing and sports management major at the Stillman School of Business. Seton Hall University, Class of 2026.

https://news.bloomberglaw.com/litigation/apple-faces-antitrust-class-action-alleging-icloud-monopolyLinks to an external site.