IPhone throttling lawsuit settled for $113M


Last month, Republican attorneys general in 11 states joined the U.S. Department of Justice in an antitrust lawsuit against Google, and bipartisan, large groups of attorneys general also have ongoing probes into Facebook and Google over potentially deceptive and anticompetitive practices.

Tech giant Apple has reportedly agreed to pay $113 million to settle allegations from 33 states and the District of Columbia that it purposefully slowed down iPhones to encourage users to purchase newer devices.

"This isn't the only financial penalty levied against Apple for the matter, but numerous payments amount to a drop in the bucket when compared to Apple's sales â€" last month, the company reported $US26.4 billion in revenue from iPhones alone in its fiscal fourth quarter earnings.

Previously, the company denied that it purposely slowed iPhone batteries. And the issue first came to light when Apple users complained about it on Reddit and tech blogs. Apple representatives have already turned to service centers with a request not to accept smartphones with this malfunction for fix.

Critics accused Apple of surreptitiously forcing users to buy phones sooner than necessary, and the outcry forced Apple to upgrade its software and offer steep discounts on battery replacements.

Under the settlement, Apple did not admit to any wrongdoing or breaking any law.

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Nonetheless, the legal challenges continued.

The payment comes after another separate settlement agreed in March, in which Apple agreed to pay up to $500 million to users who had been affected.

Users of iPhone 6 and iPhone 7 will be eligible for $25 payouts.

As part of Wednesday's settlement, $113 million will be distributed among the states, including California, Tennessee and Pennsylvania. For Arizona's share it will be used to pay for the attorney fees and to fund future investigations relating to consumer protection.

"I'm committed to holding these goliath technology companies to account if they hide the truth from their users", he said.