Apple Resolves Lawsuit by Compensating Users for Alleged Deliberate iPhone Slowdowns

Apple has commenced disbursements in a protracted class action lawsuit concerning allegations of intentionally slowing down specific iPhones in the United States. Complainants are set to receive a portion of a $500 million (£394 million) settlement, equating to approximately $92 (£72) per claim.

In 2020, Apple opted to settle the lawsuit, maintaining its denial of any wrongdoing while expressing concern over the escalating costs associated with prolonged litigation. Meanwhile, a parallel case in the United Kingdom is in progress, seeking £1.6 billion in compensation.

The genesis of the U.S. case traces back to December 2017 when Apple, confirming a long-held suspicion among iPhone owners, admitted to intentionally slowing down certain iPhones as they aged. The rationale provided was that as batteries deteriorated, their performance waned, necessitating the “slowdown” to prolong the lifespan of the phones.

However, Apple faced accusations of throttling iPhone performance without informing its customers, prompting public outcry and eventually leading to Apple’s offering discounted battery replacements to rectify the issue. The resultant legal action in the U.S. saw an initial estimate of potential individual payouts at as low as $25. Surprisingly, the actual payout now appears to be nearly four times that amount.

In the U.K., Apple’s attempt to block a comparable mass action lawsuit was unsuccessful in November of the prior year. Initiated by Justin Gutmann in June 2022, the case represents an estimated 24 million iPhone users. Apple has consistently dismissed the lawsuit as “baseless” and asserted a commitment to never intentionally diminishing the lifespan or user experience of its products to drive customer upgrades.

While pleased with the U.S. payments, Mr. Gutmann cautioned that it does not impact the U.K. case, emphasizing that Apple’s settlement does not equate to an admission of guilt. He stated, “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.” Mr. Gutmann further noted Apple’s staunch resistance in the U.K. and anticipates the case proceeding to trial in late 2024 or early 2025, although establishing a precise timeline remains challenging.