Apple to pay $155 million over deliberately slowing down iPhones
Nov 21 2020
The payout is the latest Apple has made in regard to the matter - the company paid $US500 million to settle a class-action lawsuit in May.
California will receive $24.6 million of the total settlement, which includes injunctive terms to include clear disclosures on iPhones and Apple's website informing consumers when updates will affect processing performance and how the company manages battery performance issues. The tech giant claimed the action was meant to prevent the older iPhones from shutting down unexpectedly as their batteries deteriorated. The Washington Post first reported the news.
Apple declined to comment, however, it has previously said the phones were slowed to preserve aging battery life.
Apple did not disclose the throttling when releasing the updates, and customers were outraged when it was discovered that iPhone performance was being downgraded.
This new investigation was launched by more than 30 states, including Arizona, Arkansas, and IN, according to a press release. (Apple) regarding Apple's 2016 decision to throttle consumers' iPhone speeds in order to address unexpected shutdowns in some iPhones. In addition to the fine, Apple also legally committed to greater transparency.
"My colleagues and I are trying to get the attention of these big tech companies, and you would hope a multimillion-dollar judgment with more than 30 states will get their attention", Arizona Attorney General Mark Brnovich told Reuters.
"Companies can not be disingenuous and hide things", he added.
Although Apple had since accepted to replace batteries at a highly discounted price, that didn't stop the lawsuits from going ahead.
The payment comes after another separate settlement agreed in March, in which Apple agreed to pay up to $500 million to users who had been affected. The company generates $275 billion annual revenue and boasts a market value of $2 trillion.
In July, Apple offered eligible iPhone 7 and 7 Plus users a $US25 payout if their devices were running on iOS 11.2 or later and experienced slow performance before December 21, 2017.