Apple Hit With Class Action Lawsuit Over iCloud Backups

Apple will face a proposed class action lawsuit in California federal court over allegations that iCloud unlawfully monopolizes iPhone users' access to core device backups, following a judge's decision to deny the company's motion to dismiss the case (via Reuters).

Earlier this week, the Northern District of California ruled that plaintiffs had sufficiently amended their complaint to move forward with antitrust claims in light of "substantial new allegations." The lawsuit was originally filed in March 2024 and alleges that Apple effectively forces consumers to use ‌iCloud‌ for backing up ‌iPhone‌ data while restricting third-party cloud services from providing comparable functionality, with wired backups being the only other option.

While Apple permits third-party services to back up user data such as photos, videos, and documents, the company does not allow them to access certain system-level items, including device settings, app configurations, and encrypted keychains. The plaintiffs seek to certify a nationwide class of potentially tens of millions of ‌iCloud‌ subscribers, arguing that Apple's system effectively coerces users into subscribing to its paid storage tiers.

Apple provides all users with 5GB of free ‌iCloud‌ storage. For many users, this allocation is insufficient for full-device backups. Paid plans begin at $0.99 per month for 50GB in the United States. Attorneys for the plaintiffs claim that the restricted access to full backup functionality compels users to purchase ‌iCloud‌ subscriptions, resulting in overcharges that violate U.S. competition law.

In its motion to dismiss, Apple argued that the need to use ‌iCloud‌ for backups was shaped by privacy and security considerations. The company said that the restrictions on access to sensitive files were intentional and rooted in the need to protect users' personal information. Apple also contended that the case was time-barred, as plaintiffs must generally bring federal antitrust claims within four years of the alleged violation.

Apple is required to file a formal response to the complaint by July 7, 2025. See the full court order for more information.