Tech giant Apple will be paying up to $500 million to settle a class action lawsuit accusing it of slowing down older iPhones to force users to buy new ones.
Under the proposed settlement agreement, Apple will be required to pay owners of certain iPhones $25 per affected device, which can total to a minimum of $310 million and a maximum of $500 million.
According to documents released on Friday in US District Court in San Jose, California, the amount each user will receive may vary depending on how many claims are filed, along with any additional legal fees and expenses approved by the court
The settlement agreement will be subject to approval by a judge on April 3. It comes after more than two years of legal battle amidst a global backlash faced by Apple.
In December 17, Apple admitted to using software updates to slow down older iPhones after customers and tech analysts were enraged by the diminished performance caused by the updates. Some of them suggested that the updates were aimed at forcing users to upgrade to the latest iPhone model.
However, the company argued that the updates for the iPhone 6, iPhone 6S, iPhone SE and iPhone 7 were aimed at addressing issues with older lithium-ion batteries that would make the phones suddenly shut down to protect their components.
The company explained that the updates were designed to "smooth out" peak power demands, prevent these surprise shutdowns and ultimately prolong the lifespan of batteries.
Apple later issued an apology and offered battery replacements to its customers for $79, which it lowered to $29 in January 2018. A year later, the firm's chief executive officer (CEO) Tim Cook admitted that "significantly reduced pricing for iPhone battery replacements" partly affected its revenue for 2018.
Settlement claims can be filed by iPhone users in the US if they owned an iPhone 6, 6 Plus, 6S, 6S Plus, 7, 7 Plus or SE device bought before December 21, 2017.
