Apple Faces Proposed Class-Action Lawsuit For Alleged iCloud Monopoly: They Are 'Generating Almost Pure Profit'
Portfolio Pulse from Ananya Gairola
Apple Inc. (NASDAQ:AAPL) is facing a proposed class-action lawsuit for allegedly monopolizing digital storage through iCloud, imposing restrictions that prevent customers from using other services. The lawsuit, filed in the Northern District of California, claims Apple's practices violate the Sherman Act and California's Unfair Competition Law by tying devices to iCloud, distorting competition, and leading to high prices due to its monopoly power. Apple holds approximately 70% market share in cloud storage for its users, with the lawsuit alleging iCloud's pricing reflects almost pure profit.
March 04, 2024 | 1:31 am
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Apple Inc. is accused in a class-action lawsuit of monopolizing digital storage with iCloud, leading to high prices and restricting competition.
The lawsuit against Apple for monopolizing digital storage through iCloud could negatively impact its stock price in the short term due to potential legal costs, reputational damage, and the possibility of regulatory action. The allegations of restricting competition and maintaining high prices due to monopoly power highlight significant antitrust concerns that could lead to financial penalties or operational changes if the lawsuit progresses. Given Apple's reliance on iCloud as a part of its ecosystem, any negative outcome from this lawsuit could have a substantial impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100