Apple has successfully defeated a U.S. consumer lawsuit accusing the company of monopolizing the digital storage market, leading consumers to pay inflated prices for its iCloud service. On Friday, U.S. District Judge Eumi Lee in San Jose, California, ruled that the plaintiffs in a class-action lawsuit failed to demonstrate that Apple had violated federal or state antitrust laws. However, the judge allowed the plaintiffs to amend their complaint and refile it.
The lawsuit, filed in March 2024, accused Apple of unlawfully forcing customers to use iCloud to store essential data and device settings, thereby creating a monopoly in the cloud storage market. Apple has denied any wrongdoing, maintaining that consumers have the option to use third-party cloud services for photos and videos, though restricted data files necessary for restoring Apple devices can only be stored with iCloud.
Judge Lee determined that the plaintiffs did not provide sufficient evidence to prove that Apple holds monopoly power in the cloud storage market. She also noted that Apple’s pricing strategy, even if deemed high, could encourage competitors to expand and offer alternatives.
The plaintiffs, led by a Los Angeles resident who claimed to be paying $2.99 monthly for iCloud storage, are seeking to represent a nationwide class of consumers who purchased iCloud plans. In response to the ruling, Steve Berman, an attorney for the plaintiffs, stated that they intend to file an amended lawsuit addressing the judge’s concerns.
The case, Julianna Felix Gamboa et al v. Apple Inc., was heard in the Northern District of California. Legal representatives for the plaintiffs include Steve Berman and Ben Harrington of Hagens Berman Sobol Shapiro, while Apple is defended by Belinda Lee and Sarah Ray of Latham & Watkins.
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