The French competition and fraud watchdog DGCCRF has fined tech giant Apple €25 million (£21 million) for slowing down some old iPhones and not telling people how to fix the problem.
What Happened?
Back in 2017, some iPhone users were sharing concerns online that their iPhone’s performance had slowed with age but had sped up after a battery replacement. This led to a customer sharing comparative performance tests of different models of the iPhone 6S on Reddit, which appeared to support the customer suspicions.
Technology website Geeknebench also shared the results of its own tests of several iPhones running different versions of the iOS operating system where some showed slower performance than others.
After customers concerns mounted and received more press, Apple publicly admitted that it had made changes one year earlier in the iOS 10.2.1 software update that is likely to have been responsible for the slowdown that customers may have experienced in iPhone 6, iPhone 6 Plus, iPhone 6s, iPhone 6s Plus, and iPhone SE.
Apple issued an apology to customers in January 2018.
Why?
According to Apple, the slowing down of the phones was due to the lithium-ion batteries becoming less capable of supplying peak current demands over time, so in order to prevent the phones from shutting down (and to protect their components), Apple released a software update to smooth-out the battery performance.
What The Watchdog Says
The DGCCRF has ruled, however, that Apple needs to pay €25 million fine and to display a statement on its website for a month because the iOS software update negatively affected the performance of ageing devices, customers were not told that the 10.2.1 and 11.2 iOS updates would cause a slowing down of their devices and that customers were also not told that replacing the battery rather than replacing the whole phone would solve the problem.
What Does This Mean For Your Business?
When this story first made the headlines, it was a serious embarrassment for Apple and a blot on the copybook of a brand that had managed to maintain an image of trust and reliability. This story illustrates how managing customer relationships in an age where information is shared quickly and widely by customers via the Internet involves making smart decisions about transparency and being seen to be up-front with loyal customers.
It is very likely that Apple regrets the entire incident and that even though the French regulator, in this case, has decided to impose a big fine, it is likely to be of more annoyance to Apple that customers have to be reminded of the incident again several years later and that the company will now have to display a notice on its website for a month as a further reminder.
