Apple, the technology giant, is facing a $2bn mass lawsuit in London over allegations that it “surreptitiously” installed a power management tool that reduced the performance of certain iPhone models. The lawsuit was filed by consumer champion Justin Gutmann on behalf of UK iPhone users who claim that Apple has concealed issues with batteries in some phone models. Apple has denied the allegations and argued that it is “baseless”. The power management update, which was introduced in 2017, only reduced the performance of an iPhone 6 by an average of 10%, the company claimed. However, the lawsuit claims that Apple intentionally slowed down older models of its smartphones to encourage users to upgrade. The company has also been accused of fitting faulty batteries in certain models and adopting covert power management processes. Gutmann has applied to London’s Competition Appeal Tribunal to certify the case and allow it to proceed to trial. Apple denied that it misled customers about iPhone battery issues and argued that it had issued a public apology in 2017 and offered cheaper battery replacements to those affected.
The lawsuit in London follows a similar action in the US, in which Apple agreed to pay $500m to settle a class action suit. In the US, plaintiffs claimed that Apple had slowed down older iPhones to encourage users to buy new ones. Apple has denied these allegations and said that it introduced a power management update in 2017 to manage demands on older batteries or with a low level of charge. However, the updates also had an impact on performance, leading to complaints and civil suits globally.
Apple’s rhetoric about the need to extend battery life was the subject of the original allegations. Apple apologised for not being transparent in the Reddit user case that highlighted the issue. A series of tests confirmed the issue and that battery replacement improved performance. However, this also led to similar complaints and civil suits globally, with most given approval to proceed.
Apple’s legal challenge in London is similar in nature, but on a greater scale. Richard Lloyd is seeking damages on behalf of UK iPhone users, claiming that Apple breached its legal duty to provide information to consumers in a clear and timely manner. Lloyd’s lawsuit alleges that Apple intentionally slowed down older models of its smartphones to encourage users to upgrade. The company’s actions, he argued, masked the real aim of generating sales. Apple denied these accusations and argued that its iPhones were not defective apart from some versions of iPhone 6s. The company has offered battery replacements to affected customers and issued a public apology.
The lawsuit is significant because of the potential scale of awards that could be handed to consumers affected by battery issues. Justin Gutmann has claimed that almost 10m UK iPhone users are affected by the issue. If they join the lawsuit, the total amount claimed could rise to £1.5bn ($2bn). The latest legal challenge to Apple over the battery issues that have beset the company is another attempt by consumers to hold the company to account.
Apple’s legal battles are another example of the challenges that technology companies face in attempting to manage demands from consumers for increased functionality with the realities of managing power issues in devices. Apple chose to slow down the iPhone 6 in 2017 to prevent unexpected shutdowns. However, this led to complaints from users, with some accusing the company of slowing down older devices to encourage upgrades. The lawsuits in the US and the UK argue that Apple deliberately reduced the performance of older iPhones to encourage users to buy new ones.
Apple has denied the accusations and has offered cheaper battery replacements. The company has also tried to improve the transparency of its processes and increase functionality. However, the lawsuits show that there is still a significant challenge in managing the tension between functionality and power management. The lawsuits in the UK and elsewhere will test the limits of the company’s legal defences and could have significant implications if successful. Apple is likely to continue to face lawsuits and criticism until it can convince customers that it is committed to transparency in the way it manages power issues.
