Apple Inc. (NASDAQ:AAPL) is facing a proposed class-action lawsuit, which accuses the tech giant of monopolizing digital storage for its customers.
What Happened: Filed on Friday in the Northern District of California, the lawsuit claims that Apple is imposing “surgical” restrictions that prevent customers from effectively using any service except its iCloud storage system.
According to the lawsuit, iCloud is the only service that can host certain data from Apple’s phones, tablets, and computers, including application data and device settings. The plaintiffs argue that this practice has “unlawfully tied” the devices and iCloud together.
The lawsuit also alleges that Apple’s arbitrary prohibition on hosting Restricted Files distorts the competitive landscape, favoring iCloud over all rivals. This has made it impossible for potential cloud competitors to offer Apple’s device holders a full-service cloud storage solution.
“Apple's restraints on cloud storage, as alleged herein, violate the Sherman Act and thus are ‘unlawful’ for purposes of the UCL [California's Unfair Competition Law],” the lawsuit read. “Apple's restraints also violate the ...