Apple may potentially be sued in a class action lawsuit due to restrictions on iCloud's 5GB free plan and limitations on using third-party alternatives for backups.

Cupertino, March 5, 2024

Back in 2011, when Apple first introduced iCloud, it was Steve Jobs who announced the news. He mentioned that Apple would provide 5GB of free storage for iPhone owners to use for mail, documents, and backups. Today, Apple still offers the same amount of free storage, but many users find it insufficient and end up purchasing additional space. This could potentially lead to a class-action lawsuit against the company.

The lawsuit argues that most users need more than 5GB of storage, resulting in them buying supplemental iCloud storage plans. Additionally, it points out that certain data, like iPhone configuration files, can only be backed up using iCloud, creating a reliance on the service.

While the lawsuit has not yet been granted class-action status, it is seeking to include users who have purchased iCloud plans and were overcharged due to the lack of competition in the market.

Restricted files

The lawsuit raises concerns about the limitations of backing up certain files to alternative services, stating that iCloud's 5GB is not enough to store all data that cannot be backed up elsewhere. It highlights that Apple restricts certain files, labeling them as "Restricted Files," and only allows iCloud to host them, unlike other cloud providers.

Comparatively, Samsung permits data backups using services other than Samsung Drive, illustrating Apple's strict reliance on iCloud for backups.

The lawsuit also criticizes Apple for setting high prices for iCloud storage due to a lack of competition, leading to substantial profits for the company. It suggests that Apple's pricing strategy is driven by its monopoly power in the market.

The law firm Hagens Berman Sobol Shapiro LLP is representing the lead plaintiff and the proposed class in the lawsuit, with a jury trial requested. If class-action status is granted, tens of millions of iCloud users could potentially be part of the lawsuit, seeking compensation for inflated storage prices.

Currently, Apple offers iCloud storage beyond the free 5GB at varying prices, with additional storage available through the Apple One subscription bundle. Each iCloud Plus plan comes with additional features like iCloud Private Relay, Hide My Email, Custom Domain, and HomeKit Secure Video support.

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