Apple to pay $3.2 million in Israel iPhone slowdown settlement
Proposed deal would compensate users of older models affected by battery-related performance updates. Apple continues to deny all the allegations raised in the class action lawsuits.
Apple is expected to pay NIS 10 million (approximately $3.2 million) in compensation to eligible Israeli customers as part of a proposed settlement in the long-running “iPhone slowdown” case.
A request to approve an amended settlement agreement was recently submitted to the Tel Aviv District Court. The motion consolidates five class action lawsuits filed in 2017 and 2018 against Apple. The Attorney General has not yet submitted her position on the settlement, and the court has not yet approved it.
The parties emphasized that the settlement does not constitute an admission of wrongdoing, and Apple continues to deny all the allegations raised in the lawsuits.
Approximately nine years ago, Apple was accused of deliberately slowing down certain iPhone models through software updates. According to the claims, the updates reduced device performance in order to prevent unexpected shutdowns caused by aging batteries.
It was further claimed that Apple introduced a performance-management feature to address battery issues and allowed customers to replace batteries at a discounted price. However, this did not prevent users in Israel and around the world from filing class action lawsuits. In several countries, similar cases ended in settlement agreements worth hundreds of millions of dollars.
In Israel, plaintiffs alleged that Apple installed software updates that slowed and disrupted certain devices in a planned and proactive manner, without users’ knowledge or informed consent, and while misleading them about the nature of the updates. They further claimed that Apple failed to disclose that replacing the battery could improve device performance, and that the conduct encouraged customers to upgrade to newer models.
Apple has strongly denied any wrongdoing, stating that it has never intentionally shortened the lifespan of any product or degraded user experience in order to drive upgrades.
Under the proposed settlement, Apple will pay a total of NIS 10 million to eligible customers. The agreement is subject to the approval of Judge Hadas Ovadia.
An eligible device must meet all three of the following cumulative conditions:
- It is one of the following models: iPhone SE, iPhone 6, iPhone 6 Plus, iPhone 6s, iPhone 6s Plus, iPhone 7, or iPhone 7 Plus.
- The device had iOS 10.2.1 or iOS 11.2 installed and activated before December 21, 2017.
- The user selected Israel as the designated country at the time of registration, regardless of where the device was purchased.
According to the amended settlement agreement, class members whose claims are approved by the settlement administrator will be entitled to financial compensation in accordance with the agreement’s terms.
If the settlement receives final court approval, eligible customers will be required to submit an online claim form through a designated website. After submission, claimants will be notified whether they qualify for compensation or whether their eligibility is subject to further review.
The plaintiffs are represented by Attorneys Shaul Zioni, Yitzhak Aviram, Eyal Goldenberg, Simon Elishkov, and Assaf Noy. Apple is represented by Dr. Yoav Estreicher, Attorney Adam Shapira, and Attorney Koral Bar Noy Eban of the Meitar law firm.
Attorney Zioni stated on behalf of the plaintiffs:
“After conducting a long and complex process, we have reached a settlement with Apple similar to the one reached in the United States, which will allow eligible iPhone owners to receive significant financial compensation, subject to court approval.”
Apple responded:
“We have never, and never will, intentionally shorten the life of any product or degrade the user experience to encourage customers to upgrade. Our goal has always been to create products that our customers love, and extending the life of iPhones as much as possible is an important part of that. While we strongly dispute the allegations, we agreed to settle in order to avoid further litigation.”
