Apple has started paying compensation as part of a class action lawsuit that accused the manufacturer of intentionally slowing down some iPhone models in the US. The company reached a settlement in 2020, stating that it had committed no wrongdoing, but was concerned about the costs of continuing legal proceedings. The case, which started in 2017, will cost the company half a billion dollars.
The settlement amount is $500 million, which works out to approximately $92 per person with claims from the lawsuit.
The case dates back to December 2017, when Apple confirmed long-standing suspicions among phone owners by admitting that it had intentionally slowed down some iPhones as they aged. The company argued that as batteries age, their performance decreases, and therefore the “slowdown” extends the life of the phones.
However, the company was accused of throttling smartphone performance without informing its customers, and the confusion resulted in Apple offering a battery replacement at a discounted price to solve the problem.
This led to legal action. There was no trial, but a settlement was reached. At the time of its inception, it was estimated that each person could receive as little as $25, but the actual payout appears to be almost four times that amount.
Apple’s problems do not end on the American market
According to the BBC, a similar case is taking place in Great Britain, and the defendants are demanding damages of 1.6 billion pounds. Apple tried to block the British class action lawsuit, but the request was rejected in November. The case, first brought by Justin Gutmann in June 2022, affects an estimated 24 million iPhone users.
Apple previously called the lawsuit “baseless” and said that “we have never done – and would never do – anything to intentionally shorten the life of any Apple product or degrade the user experience in order to encourage customers to upgrade. “.
Gutmann told the BBC he was pleased to hear about the payments being made in USA, however, he warned that this had no connection with the British case. – This does not affect our situation, they did not admit anything – there was a settlement – he said. – It’s a moral victory, but it won’t do me much good. I must continue to fight and pursue the case in British jurisdiction, he added.
Gutmann said Apple had “fought hard” against the U.K. class action, which will now go to the Court of Appeal to hear the company’s request to stop the case. In his opinion, it is difficult to determine the schedule of further events, but he hopes that the case will be considered at the end of 2024 or early 2025.
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