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Nov 22 2020
Tech giant Apple has reportedly agreed to pay $113 million to settle allegations from 33 states and the District of Columbia that it purposefully slowed down iPhones to encourage users to purchase newer devices.
Earlier this year Apple agreed to pay up to $500 million to settle a class-action lawsuit over the same issue. In turn, the attorneys claimed that Apple behaved this way with the understanding that it could profit from people who thought they needed to upgrade to a new iPhone because their existing one was running slowly or shutting down unexpectedly.
Apple declined to comment, however, it has previously said the phones were slowed to preserve aging battery life. A French competition watchdog fined the company $US27 million in February for purposefully slowing performance on older iPhones without telling users about it. Still, Apple has already been offering these battery-management options through iOS, so don't necessarily expect any huge changes here.
Unsurprisingly, Apple denied that this was the case. Some customers and critics questioned if the move was instead created to prompt more sales of new iPhone models, which Applepushed back on.
The settlement may sound enormous, but it's worth bearing in mind that Apple boasts an annual revenue of $275 billion - approximately €232 billion.
Although Apple had since accepted to replace batteries at a highly discounted price, that didn't stop the lawsuits from going ahead. Arizona will receive $5 million from the proposed settlement, which will be used to fund consumer protection activities, and reimbursing the attorney fees accrued during the investigation. The issue didn't affect all iPhone 12 mini users. This came as the states attorney generals sued Apple for hiding the fact that it was slowing down the affected iPhones from their owners. "I'm committed to holding these goliath technology companies accountable when they hide important information from users".