Apple has agreed to pay a sum of $500 million settlement after admitting to the accused of slowing down older iPhones. According to this deal, Apple will compensate small payouts for many iPhone owners in the US, plus greater compensation for named class members and attorneys. It covers everyone who bought any product in the iPhone 6 and 7 lineup in the US which Apple silently slowed down to conserve battery life.
According to a report from Bloomberg Law, the settlement was filed in a California court last Friday and is awaiting final court approval. There were dozens of class-action lawsuits that were filed between 2017 and 2018 that were finally combined into one complaint which is on its verge to be solved.
As for the compensation by Apple, the company will offer $25 to any current or former owner of a covered iPhone. Named class members will receive $1,500 or $3,500, and around $90 million will go toward attorneys. The settlement has a minimum payout of $310 million, so the payment might increase if few people file claims. In case, if the payments exceed the $500 million cap, each iPhone owner will receive less money.
This case starts with Apple’s “Batterygate” controversy. In 2017, iPhone users discovered that iOS artificially limited processor speeds as phone batteries aged. This, in turn, reduces the performance of the phone to reduced stress on the battery and sometimes led to the accidental shutdown. But Apple didn’t reveal this feature to the user which led people to believe that their phones are slowing down to their old age. As a result, they turn to buy all-new devices to fix the problem. In the lawsuits, users claimed that if they have been known about this feature, they would rather have bought a new battery instead of an all0new device.
French and Italian authorities have already censured Apple for the throttling controversy, with France announcing a €25 million fine last month. The US Justice Department also announced an investigation in 2018. Apple also dropped the cost of battery replacements and offered partial refunds to some iPhone owners who paid for a new battery.
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