Apple has commenced the disbursement of funds in an extended legal battle involving allegations of intentionally slowing down certain iPhones in the United States. The resolution, agreed upon in 2020, entails a $500 million (£394 million) settlement, with claimants set to receive approximately $92 (£72) per claim.
In 2017, Apple confirmed suspicions by acknowledging that it deliberately slowed down some iPhones as they aged, attributing it to the diminished performance of aging batteries. The admission led to a public outcry, as Apple was accused of throttling iPhone performance without informing customers. In response, the tech giant offered discounted battery replacements, and the settlement was reached in 2020.
Despite Apple’s denial of any wrongdoing, the company expressed concerns about the escalating costs associated with ongoing litigation. At the time of the settlement, it was initially estimated that each affected individual might receive as little as $25. However, the actual payout now appears to be nearly four times that amount, with claimants set to receive around $92 per claim.
Meanwhile, a similar case is underway in the United Kingdom, seeking £1.6 billion in compensation. Apple attempted to block this mass action lawsuit in November of the previous year but was unsuccessful. The UK case, initiated by Justin Gutmann in June 2022, represents an estimated 24 million iPhone users.
Apple has consistently dismissed the UK lawsuit as “baseless,” maintaining that it has never intentionally shortened the life of any product or degraded the user experience to drive customer upgrades. Mr. Gutmann welcomed news of the US payments but cautioned that it doesn’t impact the UK case, stating, “It’s a moral victory but not much use to me. I’ve got to plough on and pursue the case in the UK jurisdiction.”
He emphasized that Apple is vigorously contesting the UK class action and expects it to go to trial in late 2024 or early 2025, although the timeline remains uncertain. The next development in the UK case will be a hearing at the Court of Appeal, where Apple seeks to halt the proceedings. Mr. Gutmann remains determined to continue the legal battle, emphasizing the significance of the case in holding Apple accountable for its alleged actions in the UK.