Apple to Pay up to $500 Million over Intentionally Slowing Down Phones

Apple to Pay up to $500 Million over Intentionally Slowing Down Phones

Apple to Pay up to $500 Million over Intentionally Slowing Down Phones

Towards the end of 2017, Apple fessed up, admitting that it had been deliberately and secretly slowing older models of iPhone in order to eke out extra life from their aging batteries. According to Reuters, Apple will fork over $310 million to as much as $500 million to fund the payout.

As Bloomberg Law explains, dozens of class-action lawsuits were filed against Apple between December 2017 and June 2018 regarding the throttling, but the U.S. Judicial Panel on Multidistrict Litigation combined those suits in the U.S. District Court for the Northern District of California in April 2018.

The settlement only applies to U.S. owners of iPhones, and won't be honoured for Australian consumers unless a similar class action is successful here. As part of this settlement, Apple will pay around $25 per iPhone to consumers.

However, as per the report, Apple denied wrongdoing and settled the nationwide case to avoid the burdens and costs of litigation.

Recently, Apple was fined 25 million euros by French government for slowing down iPhones through updates.

The rest of the settlement money will be distributed to owners of iPhone 6, 6S, 7 and SE models in the United States who meet eligibility requirements related to the operating system they had running.

Apple did not respond to a request for comment.

Meanwhile, the "named plaintiffs" - those people who put their names down on the class action on behalf of all iPhone owners - will receive $1,500. It also covers US owners of the iPhone 7 and 7 Plus that ran iOS 11.2 or later before December 21, 2017.

The phones will also need to have been purchased and used before December 21, 2017, the day after Apple admitted to the speed-throttling practice.

In addition, the lawyers will ask the court to grant them $93m in "reasonable attorneys' fees" and another $1.5m in expenses.

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