Apple Settles $500M Lawsuit Over Claims It Slowed Down Older iPhone Models On Purpose

Apple Inc. AAPL has settled a lawsuit alleging it slowed down older model iPhones customers buy new devices or replacement batteries.

What Happened

Apple customers, who own the iPhone 6, 7, or SE models, running the iOS 10.2.1 operating system or later versions of it, will be eligible for a $25 payout per iPhone, under the settlement approved by a U.S. District Judge in San Jose, California.

Additionally, customers who own an iPhone 7 or 7 Plus with iOS 11.2 or later versions installed on it before Dec 21, 2017, are also eligible for the payout, according to Reuters.

The minimum total payout that Apple would have to make is $310 million, but it could be adjusted depending on the number of claimants.

Lawyers representing consumers called the settlement “fair, reasonable and adequate.” The lawyers plan to claim $93 million in legal fees and an additional $1.5 million in expenses.

Why It Matters

France’s competition and fraud agency, “Direction générale de la Concurrence, de la Consommation et de la Répression des fraudes” (DGCCRF) fined Apple 25 million Euros or $27 million for slowing down older iPhones.

DGCCRF noted that iPhone owners were not informed that installing iOS updates (10.2.1 and 11.2) could slow down their devices.

Apple has acknowledged the practice of slowing down older models. The company refers to this practice as “performance management.”