By Mike Scarcella

March 3 (Reuters) - Apple 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 violated federal or state antitrust law. However, she ruled they could amend their complaint and refile it.

The lawsuit alleged Apple violated antitrust law by coercing customers to use the company’s iCloud service to back up core data and device setting files. Apple has denied any wrongdoing.

Lee said in her ruling that consumers are not required to purchase cloud storage from Apple. The judge also said the plaintiffs’ claims did not plausibly show Apple as having any monopoly power in the cloud storage market.

Apple 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 allows third-party storage for photos and videos but not for users' restricted data files that are needed to “restore” an Apple device. In seeking dismissal of the lawsuit, Apple said its policy was designed to guarantee high levels of security.

Lee said in her ruling that “if anything, Apple’s allegedly high prices would incentivize rivals to increase production to take share from Apple.”

The case is Julianna Felix Gamboa et al v. Apple Inc., 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: Belinda Lee and Sarah Ray of Latham & Watkins

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