2024-03-11
Apple has always restricted access to its free cloud storage through iCloud. This business policy has caused trouble for some users and has become the cause of a class-action lawsuit against the company?
According to the International Electronic Business Report, the U.S. District Court for the Northern District received a class action lawsuit in which Apple’s own cloud platform iCloud was accused of being the only platform that can host some data on its mobile phones and tablets, including what users need when changing devices. Accessing application data and device settings, this practice actually "illegally binds" Apple's mobile devices to iCloud.
The complaint also mentioned that Apple’s iCloud has thus dominated the market, with a market share of approximately 70%. iCloud is Apple's most profitable product, with profit margins exceeding those of other products because it is "not subject to competition."
The court filing alleges that Apple is "manipulating the playing field for cloud services" by unnecessarily restricting the storage of certain iPhone and iPad files on its iCloud platform.
Additionally, the company's measly 5GB of free iCloud storage has also been criticized, with revenue evidence showing that this amount is not enough to meet the needs of users, who need to purchase additional plans to meet their needs, according to Bloomberg.
"While Apple device holders can receive 5GB of free iCloud storage, according to Apple's iCloud revenue data, most users find this is no longer enough to meet their storage needs, so they choose to purchase additional iCloud storage plans. Additionally, , Apple has also raised the price of iCloud to the point where it can almost achieve pure profit, which shows that Apple has monopoly power."
In comparison, its competitor Huawei also provides 5GB of free cloud storage space, Xiaomi provides 10GB of free capacity, and Google Drive provides a 15GB free package.
Most of the lawsuits revolve around Apple's restriction of iPhone and iPad users to using iCloud to back up files.
Many users of Apple products are quite unhappy with the fact that Steve Jobs introduced 5GB of free iCloud storage at WWDC in 2011, and its value has not changed over the years. Despite this, Apple has still managed to attract a large number of customers into its ecosystem and remain competitive in the market. However, the lawsuit raises a key argument: Apple did not limit iCloud storage to 5GB for security or technical reasons.
The lawsuit documents read: "Apple has no actual technical or security basis for iCloud space storage restrictions and restrictions on certain files. The real purpose of this distinction is likely to be for e-commerce, making iCloud Products gain an unfair advantage in competition with other cloud platforms."
The accusation suggests that Apple may be limiting the functionality and capacity of its iCloud service out of business interests rather than technical or security needs. This strategy may weaken fair competition in the market and may have an inevitable impact on consumers and the entire industry.
It is understood that the 37-page lawsuit document was prepared by the Hagens Berman law firm representing the lead plaintiff Julianna Felix Gamboa, which previously filed a $560 million class action lawsuit against Apple over Apple's book price monopoly.
We'll have to wait and see whether the lawsuit will prompt Apple to lower its iCloud service fees or increase free iCloud space.
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