The filing notes that Apple’s domination in cloud storage is not due to any lack of competitors. The suit says that “Cloud storage is offered by every major technology company.” The suit names Google, Microsoft, and Dropbox as competitors. But the issue is that certain data listed as Restricted Files are off-limits to any cloud service except for iCloud. The filing adds, “These sequestered files—hereafter ‘Restricted Files’—are significant because they include data needed to restore a device when it is replaced.”
Illustration in the court filing that compares Apple’s company-wide margins (L) with the huge margins on iCloud subscriptions
The filing says, “Apple’s arbitrary prohibition on hosting Restricted Files fundamentally distorts the competitive landscape to privilege iCloud over all rivals. As a result of this restraint, would-be cloud competitors are unable to offer Apple’s device holders a full-service cloud storage solution, or even a pale comparison. Sure, rivals can host photos, videos, and certain other data files. But they cannot host all of the data users want to back up, including for device restoration.”
Apple could end up seeking to settle the case as it often does. The judge would have to agree to the settlement and sign off on how any settlement fund would be distributed. We are in the early innings here, stay tuned.