Apple's 'Battery Gate' $25 Settlement in the US... Domestic Lawsuit Pending
Approval of Settlement Compensation Plan by U.S. Northern District Court of California
Lawsuit Proceeding Claiming 200,000 KRW per Person in Korea
[Asia Economy Reporter Han Jinju] As a result of a class-action lawsuit against Apple for arbitrarily lowering the battery specifications of older iPhone models, U.S. iPhone users will receive $25 each as a settlement. The recognition of the legitimacy of the class-action claim is expected to have a positive impact on ongoing lawsuits in South Korea.
On the 13th (local time), the San Jose court in California, USA, approved Apple's settlement plan. U.S. iPhone users who meet the conditions can receive the settlement payment.
The recipients eligible for the settlement from this class-action lawsuit are those who owned iPhone 6, 6+, 6s, 6s+, SE models running iOS 10.2.1 or higher before December 2017. It also applies to owners of iPhone 7 and 7+ (iOS 11.2 or higher).
Apple must pay a settlement amount ranging from a minimum of $310 million to a maximum of $500 million. Each individual can receive approximately $25, but the amount varies depending on the number of recipients. The court explained, "The amount paid per eligible device varies according to attorney fees, various expense reimbursements, and the actual number of approved claims."
However, Apple maintains that the settlement is to conclude the dispute rather than an admission of fault. Apple also explained that the performance was reduced to prevent sudden shutdowns immediately after the battery gate incident. Apple lowered the battery replacement cost from $79 to $29 shortly after the battery gate broke out.
There is growing interest in whether the class-action lawsuit result in the U.S. will bring positive outcomes to the domestic class-action lawsuit rulings. Since it was a claim for damages due to property damage, and violations of federal laws related to computer system protection may correspond to violations of the domestic Information and Communications Network Act, it is expected to be helpful. Earlier, the Italian Competition Authority imposed a fine of 10 million euros in October 2018, and France also imposed a fine of 25 million euros in February through the Directorate General for Competition, Consumer Affairs and Fraud Control.
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Domestic iPhone users filed a lawsuit in March 2018 claiming 200,000 KRW in damages per iPhone, and the first trial is currently underway. Law firm Hannuri, representing iPhone users, filed a damage claim against Apple and Apple Korea at the Seoul Central District Court, with a total of 63,879 people participating in the lawsuit. It is the largest single lawsuit in South Korea. Since there is no class-action system in South Korea, even if the court rules in favor, the effect applies only to the parties involved in the lawsuit.
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