Apple iCloud Storage Lawsuit 2026: Active Antitrust Case, No Settlement Yet—Here’s What iPhone Users Need to Know

An active Apple iCloud Class Action Lawsuit, alleges Apple illegally monopolizes cloud storage by blocking third-party services and overcharging millions of iPhone and iPad users. As of February 2026, the case remains in discovery—no settlement exists, but a federal judge denied Apple’s dismissal motion in June 2025, allowing monopoly claims to proceed.

What Is the Apple iCloud Storage Lawsuit About?

The lawsuit, Gamboa v. Apple Inc., Case No. 5:24-cv-01270, was filed March 1, 2024, in the U.S. District Court for the Northern District of California. Plaintiff Felix Gamboa alleges Apple forces users to overpay for iCloud storage by restricting which files third-party cloud services like Google Drive, Dropbox, and Microsoft OneDrive can access.

Apple holds over 70% of the cloud storage market on iOS devices with profit margins near 80%—far higher than Apple’s average 40% margin. The lawsuit claims this dominance stems from illegal tying, not product superiority.

Why This Matters: How Apple Allegedly Blocks Competition

Third-party cloud services can back up photos, videos, and documents. But Apple blocks them from accessing “restricted files” like device settings, app configurations, encrypted keychains, and Health app data—files essential for complete device restoration.

This forces iPhone users into two bad options: use iCloud exclusively for full backups, or juggle multiple cloud services (iCloud for restricted files, a competitor for everything else). Plaintiffs call this arrangement “unattractive” and anti-competitive.

Apple’s restrictions mean users can’t switch to cheaper alternatives. The lawsuit alleges this creates artificial pricing power, allowing Apple to charge “supracompetitive fees” for cloud storage.

Who Qualifies for the Apple iCloud Lawsuit?

The proposed class includes U.S. consumers who purchased iCloud storage plans from March 1, 2020, onward. Tens of millions of iCloud subscribers could qualify.

You don’t need to take action now. If the case settles or plaintiffs win at trial, eligible class members will receive notice with claim instructions.

Current Status: What Happened in June 2025?

On June 16, 2025, U.S. District Judge Eumi K. Lee denied Apple’s motion to dismiss, ruling plaintiffs “plausibly alleged” Apple’s restrictions are “coercive” and secured an unlawful monopoly. The court noted Apple’s 96.1% share of cloud storage revenue on Apple devices.

Apple filed a formal response July 7, 2025. The case now enters discovery, where plaintiffs can obtain internal Apple documents, pricing analyses, and communications about iCloud policies.

Apple’s Defense: Security and Consumer Choice

Apple argues its iCloud restrictions exist for “security and privacy considerations” given the sensitivity of backup data. Apple also claims users have alternatives: disable iCloud entirely, use local wired backups to computers, or manage storage by deleting files.

However, plaintiffs counter that local backups are inconvenient and most users prefer seamless cloud restoration when upgrading devices.

What Could Apple Users Receive in Compensation?

No settlement exists yet. If plaintiffs prevail, remedies could include:

• Refunds or credits for iCloud storage purchases during the class period
• Damages based on overcharges compared to competitive market pricing
• Treble damages (triple actual damages) under federal antitrust law
• Policy changes allowing third-party cloud services to access restricted files

Consumer antitrust settlements typically pay $50–$200 per person, though amounts vary based on settlement size and number of claimants.

Similar to active cases like the Gmail Class Action Lawsuit, with a $425 million verdict under appeal, tech monopoly claims are gaining traction in courts.

When Will Claims Open?

Unknown. Class actions typically take 1–3 years from filing to settlement. Discovery and class certification could extend into late 2026 or 2027.

FAQs About the Apple iCloud Lawsuit

Do I need to file anything now?

No. Class members are automatically included unless they opt out. Claim forms only become necessary if a settlement is reached.

Is this lawsuit real?

Yes. Court records confirm Gamboa v. Apple Inc., Case No. 5:24-cv-01270, is active in federal court.

What if I stopped using iCloud?

You may still qualify if you purchased iCloud storage between March 1, 2020, and the settlement date (if one occurs).

Could Apple raise iCloud prices to cover settlement costs?

Possible, though antitrust remedies often require pricing changes to reflect competitive markets.

Last Updated: Feb 4, 2026

Disclaimer: This article provides information about the Apple iCloud antitrust lawsuit based on court filings. It is not legal advice.

Stay informed, stay protected. — AllAboutLawyer.com

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
Read more about Sarah