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NEWS / 2024 / 01 / 08 / APPLE STARTS COMPENSATING US IPHONE USERS FOR DEVICE SLOWDOWN, UK LAWSUIT PENDING

Apple starts compensating US iPhone users for device slowdown, UK lawsuit pending

19:52 08.01.2024

Tech giant Apple has reportedly begun making payments to eligible iPhone owners in the US as part of a settlement agreement, following a lawsuit filed in 2017. The company has not admitted any wrongdoing. US owners of certain iPhone models, including the iPhone 6, 6 Plus, 6s, 6s Plus, SE, 7, and 7 Plus, are entitled to receive approximately $92 (??72) for each affected model owned, with a total payout capped at $500 million (??394 million). To qualify, the devices must have been running iOS 10.2.1 or later before 21 December 2017, or iPhone 7 or 7 Plus on iOS 11.2. Some US complainants have already reported receiving payments, with more expected over the course of this month.

Meanwhile, in the UK, a similar case against Apple has been given the go-ahead by the court. Consumer champion Justin Gutmann is leading the case, alleging that Apple deceived up to 25 million customers by deliberately slowing down their devices without their knowledge. The lawsuit claims that Apple achieved this through software updates that diminished the performance of older handsets over time. The affected models in the UK case are the same as those in the US case. Gutmann accuses Apple of exploiting its market dominance by effectively forcing customers to pay for replacement batteries or new phones. He is seeking damages of up to ??1.6 billion, with a midpoint range of ??853 million.

Apple has previously admitted to slowing down older iPhones with deteriorating batteries, but stated that it was necessary to protect the components. In addition to the US and UK cases, Apple has settled similar lawsuits in Arizona and California, paying $113 million (??93 million) and $500 million (??413 million), respectively.

The UK court ruling allowing Gutmann's lawsuit to proceed has been described as a "major step towards consumer justice" by the claimant. Apple, however, has called the case baseless and vehemently denied any defective batteries in its handsets, except for a few iPhone 6S models for which it offered free battery replacements. The company emphasized its commitment to creating products that customers love and ensuring the longevity of its iPhones. The Competition Appeal Tribunal has asked Gutmann's legal team to address certain issues before any trial takes place, and Gutmann may also need to revise his funding arrangements.

/ Monday, 8 January 2024 /

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