June 16 (Reuters) - Apple ( AAPL ) must face a proposed class
action accusing the iPhone maker of illegally monopolizing the
market for digital storage and causing consumers to overpay for
its iCloud service, a federal judge in California ruled on
Monday.
U.S. District Judge Eumi Lee in San Jose, California, said
the plaintiffs in the case had sufficiently alleged Apple ( AAPL )
violated antitrust law by requiring iPhone customers to use its
iCloud data storage service to back up core data and device
setting files.
Lee's new order revived the plaintiffs' lawsuit after she
dismissed an earlier version of it. She said the consumers added
substantial new allegations about the importance of data storage
for all iPhone files, including restricted ones like settings
data.
Apple ( AAPL ) did not immediately respond to a request for comment.
The company has denied any wrongdoing.
An attorney for the consumers had no immediate comment on
the ruling.
A Los Angeles resident who said she was paying $2.99 monthly
for an iCloud storage plan filed the lawsuit last year.
Apple ( AAPL ) allows third-party storage for photos and videos but
not for some users' data files that are needed to "restore" an
Apple ( AAPL ) device.
Apple ( AAPL ) has defended its policy as designed to guarantee high
levels of security. The company also urged Lee to dismiss the
plaintiff's claims as untimely. Plaintiffs generally face a
four-year window to bring claims under U.S. antitrust law.
In her ruling, Lee said it was premature to dismiss the
claims as time-barred, but suggested the issue could be
revisited later in the litigation.
The plaintiff's lawyers want to represent a nationwide class
of at tens of millions of consumers who purchased iCloud storage
plans.
The case is Felix Gamboa v. Apple Inc ( AAPL ), U.S. District Court
for the Northern District of California, No. 5:24-cv-01270.
For plaintiffs: Steve Berman and Ben Harrington of Hagens
Berman Sobol Shapiro
For Apple ( AAPL ): Belinda Lee and Sarah Ray of Latham & Watkins
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