Apple must again defend how it sells iCloud storage after a U-S federal judge said an antitrust lawsuit against the company can move ahead. U.S. District Judge Eumi Lee ruled that iPhone owners have plausibly alleged Apple forces them to rely on iCloud for core device backups, settings, keychains, and other files essential for restoring a phone, while blocking rival cloud services from doing the same.
She revived the case after dismissing an earlier version last year, noting that the amended complaint added significant new allegations about Apple’s control over backups, according to Reuters. The lead plaintiff, Los Angeles resident Felix Gamboa, says she pays $2.99 a month for iCloud and wants to represent “tens of millions” of subscribers nationwide.
The suit accuses Apple of overcharging users and illegally monopolizing digital storage. Apple denies wrongdoing, arguing the restrictions protect privacy and that the claims are too old, but Judge Lee said those defenses are premature. The case is Gamboa v. Apple, filed in the Northern District of California.
Can You Get More Free iCloud Storage in the Future?
Apple’s 5 GB of free iCloud storage is too small for whole-device backups, effectively shoehorning many customers into paid plans that start at $0.99 a month. While photos and documents can be stored elsewhere, third-party clouds cannot back up encrypted system data, leaving wired transfers to a Mac or PC as the only alternative. Plaintiffs say most iPhone users don’t own a computer and therefore have “no practical choice” but to pay Apple.
Apple maintains that limiting access to sensitive files is necessary to keep users safe and prevent data leaks. The company also argues that free local backups remain available through Finder on macOS or iTunes on Windows, undercutting claims of a total monopoly. Still, the judge’s order means Apple must formally answer the complaint by July 7 and prepare for discovery.
If the class is certified, damages could reach hundreds of millions of dollars, far eclipsing the $2.99 monthly fee at the heart of the dispute. We can also see Apple being forced to increase the free iCloud storage offered so that it can fit backups properly.
The decision lands as Apple faces mounting legal scrutiny worldwide, from App Store rules to patent fights. For now, though, the spotlight falls squarely on iCloud and whether Apple’s security-first justification outweighs antitrust concerns. The next phase will test how much control a device maker can wield over the data lifeline of its own products, and whether consumers ultimately pay the price.