Apple Wins Dismissal of iCloud Antitrust Lawsuit, but Plaintiffs May Refile

Apple  secured a legal victory in a federal antitrust case alleging the company unlawfully tied its iCloud storage service to its mobile devices, according to Reuters. U.S. District Judge Eumi K. Lee ruled that the plaintiffs had failed to sufficiently support their claim that Apple engaged in illegal market manipulation.

The lawsuit, initially filed in March 2024, argued that Apple forced consumers to use its iCloud storage by restricting certain data backups to its own platform. However, per Reuters, Judge Lee ruled on February 28 that no Apple device user is required to purchase iCloud or any cloud storage service, undermining the central premise of the lawsuit.

In her decision, Judge Lee found that the plaintiffs had not plausibly demonstrated Apple’s dominance in the cloud storage market. The ruling also noted that Apple allows third-party services for photo and video storage, though it limits backup options for restricted data files needed for device restoration. Apple has maintained that these policies are in place to ensure security.

Related: Apple Faces £3 Billion Lawsuit in UK Over iCloud Monopoly Allegations

Despite dismissing the case, Judge Lee left the door open for plaintiffs to amend their complaint and refile it. According to Reuters, attorney Steve Berman, representing the plaintiffs, stated that they plan to revise the lawsuit to address the court’s concerns.

The proposed class action aimed to represent tens of millions of U.S. consumers who pay for iCloud storage. One named plaintiff, a Los Angeles resident, claimed she paid $2.99 per month for an iCloud plan. The lawsuit sought to prove that Apple’s policies forced consumers to pay more for storage options.

In response to Apple’s motion to dismiss, the company defended its cloud storage policies as a means of maintaining security and user experience. Judge Lee noted that if Apple’s pricing was as high as the lawsuit suggested, competitors would likely be incentivized to offer better alternatives.

Source: Reuters