Apple settles iPhone slowdown case for $500m

Apple settles iPhone slowdown case for $500m

Apple has agreed to settle legal action taken against it for deliberately slowing down older iPhones. According to Reuters, Apple will fork over $310 million to as much as $500 million to fund the payout.

After almost two years of litigation, papers filed in recent days ask the USA district court in Northern California to rubber-stamp the settlement.

Apple has agreed to pay affected U.S. customers $25 for slowing down their older iPhone models without notice.

Even though Apple has agreed to settle the case, Apple denied any wrongdoing and mentioned that it settled the case to avoid the burdens and costs of litigation. As part of this settlement, Apple will pay around $25 per iPhone to consumers.

The lawsuit followed complaints by Apple's customers who said their phone performance slowed down after they installed Apple software updates. While the proposed award only applies to USA customers, the settlement says consumers outside of the country still have the right to file legal claims against Apple to pay up over Batterygate. However, you shouldn't start lining up hands-out at your local Apple store in Australia expecting any of that sweet cash.

IPhone users who were named in the class-action lawsuit will get up to $3,500 each.

Apple had earlier admitted that it lowers the clock speed of the processor on iPhones when the battery health degrades but had not mentioned it anywhere and customers were not informed that the company intentionally slows down the iPhone.

Today, Apple, which has not commented on the court decision, is preparing to compensate the owners concerned.

The settlement covers American owners of iPhone 6, 6 Plus, 6s, 6s Plus, 7, 7Plus or SE that ran the iOS 10.2.1 or later operating system.

Per the agreement, non-U.S. iPhone owners' claims "will not be released" and they may pursue their own claims.

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