Apple To Pay $500M For Slowing Down Old iPhones

LOS ANGELES (CBSLA/AP) – Apple will pay $500 million in order to settle a class-action lawsuit over the tech giant's admission back in 2017 that it slowed down the performance of its iPhone 6 and 7 models.

The settlement was reached Friday, according to Reuters, but must still be approved by a judge. Under the terms of the deal, anyone who owned or owns an iPhone 6, 6 Plus, 6s, 6s Plus, 7, 7 Plus and SE device should be eligible to receive at least $25 from Apple.

The settlement, however, is only for iPhone users in the U.S., not worldwide.

At least $310 million of the $500 million must go to paying iPhone owners, according to the court motion filed in U.S. District Court in San Jose. If the $310 million threshold is not reached, then iPhone users who filed claims will get more than the $25 stipulated, up to a maximum of $500 per person.

A software update first released in 2016 began to slow down older iPhones when their batteries weakened. Apple said the update was designed to prevent them from abruptly turning off, but Apple didn't fully admit what it was doing until December of 2017.

Critics argued that the move was intentional, designed to force users to upgrade to newer iPhones or pay for new batteries.

Apple then apologized for not being more forthcoming and offered to replace batteries on older iPhones for $29, a $50 discount.

(© Copyright 2020 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)