December 1, 2020

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Apple must pay a record fine. Slowing the iPhone costs him 11 billion

2 min read
Apple must pay a record fine. Slowing the iPhone costs him 11 billion

At the turn of 2017 and 2018, it became apparent that Apple artificially and deliberately slowed down older iPhones with software updates. Apple subsequently admitted that the goal was to prevent unwanted reboots of phones that the older battery could no longer supply enough power.

 

However, the provision of this information only to the community after it has been discovered has raised understandable customer criticism. This resulted in a series of lawsuits and fines around the world. Proceedings are ongoing, Apple recently fined EUR 25 million in France.

 

Expensive settlement in the US

 

However, the fine imposed by the French court appears to be minor compared to the amount that Apple will pay in the US. There he decided to close the lawsuit by paying $ 25 for each phone affected, with no exact total amount yet.

 

The draft extrajudicial settlement agreement, which still has to be approved by the court, but contains ceilings. At least Apple will pay $ 310 million, but the “slowdown price”, according to Reuters, can reach up to $ 500 million.

 

Apple is willing to pay such a high price despite officially refusing to blame. He justifies the conclusion of the agreement by wanting to avoid further stretching the already long dispute. However, the real reason for the agreement will be rather a fear of impending higher fines or an attempt to prevent negative PR.

 

Summary

 

In any case, the deal was also welcomed by customer representatives who consider $ 25 per phone hit as a reasonable compromise. Despite the fact that their experts estimated the damage caused as a last resort to 46 USD. Legal representatives of the victims will receive 30% of the ‘assessed’ amount.

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