March 3 (Reuters) - Apple ( AAPL ) won a ruling dismissing a

lawsuit that accused the iPhone maker of illegally monopolizing

the market for digital storage, causing consumers to pay more

for its iCloud service.

U.S. District Judge Eumi Lee in San Jose, California, on

Friday said the plaintiffs in the class action had not shown

Apple ( AAPL ) violated federal or state antitrust law. However, she

ruled they could amend their complaint and refile it.

The lawsuit alleged Apple ( AAPL ) violated antitrust law by coercing

customers to use the company's iCloud service to back up core

data and device setting files. Apple ( AAPL ) has denied any wrongdoing.

Lee said in her ruling that consumers are not required to

purchase cloud storage from Apple ( AAPL ). The judge also said the

plaintiffs' claims did not plausibly show Apple ( AAPL ) as having any

monopoly power in the cloud storage market.

Apple ( AAPL ) did not immediately respond to a request for comment.

Steve Berman, an attorney for the plaintiffs, said they intend

to file an amended lawsuit that addresses the judge's concerns.

The lawsuit was filed in March 2024 on behalf of a Los

Angeles resident who said she was paying $2.99 monthly for an

iCloud storage plan. Her lawyers want to represent a nationwide

class of at least tens of millions of consumers who purchased

iCloud storage plans.

Apple ( AAPL ) allows third-party storage for photos and videos but

not for users' restricted data files that are needed to

"restore" an Apple ( AAPL ) device. In seeking dismissal of the lawsuit,

Apple ( AAPL ) said its policy was designed to guarantee high levels of

security.

Lee said in her ruling that "if anything, Apple's ( AAPL ) allegedly

high prices would incentivize rivals to increase production to

take share from Apple ( AAPL )."

The case is Julianna Felix Gamboa et al v. Apple Inc. ( AAPL ), U.S.

District Court, 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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