Apple Inc. is set to begin distributing between $310 million and $500 million to settle claims that the company intentionally slowed down the performance of older iPhones through a new iOS update. The final payout amount will be determined by the total number of approved claims.
Approximately 3 million claimants in the class action lawsuit are expected to receive payments of approximately $65, as reported by Verge. However, those who did not file a claim by the October 2020 deadline will not be eligible for the settlement.
This payout has been delayed due to prolonged court procedures and appeals. However, last week, an appeal challenging the lawsuit was dismissed, enabling the settlement to be distributed to impacted iPhone consumers.
The eligibility for the settlement was restricted to customers who owned an iPhone 6, 6 Plus, 6s, 6s Plus, or SE device and had run the iOS 10.2.1 software (or later) before December 21, 2017. Similarly, owners of an iPhone 7 or 7 Plus who downloaded iOS 11.2 or later before the same date were also eligible.
The lawsuit emanated from allegations that Apple’s software updates deliberately slowed down iPhone devices’ performance. Apple maintained that this was an attempt to extend the devices’ battery life.
The company did not disclose the impact of the updates on performance speed until after user complaints emerged. This led to accusations of “deception and planned obsolescence,” sparking several lawsuits globally.
While Apple denies any wrongdoings, it has chosen to settle the lawsuit to prevent costly and burdensome litigation.