Apple might face public interest lawsuit in China for allegedly slowing down old iPhone models
As Apple agrees to pay settlement to its US customers over allegation of throttling older phones, legal experts said Apple's Chinese customers should also follow suit to demand rightful compensation for breached customer interest.
Apple, the smartphone giant has agreed on a settlement of up to $500 million in the US, with each affected customer entitled to approximately $25, according to a report by the Reuters. The company had been accused of degrading the performance of older models to boost upgrades to new models and installation of new batteries.
Legal experts told the Global Times that the large number of Chinese customers should also be entitled to its compensation, but noted the process might differ from the US.
Li Min, a senior partner with Shanghai Hansheng Law Offices, told the Global Times on Tuesday that the deliberate slowing down in older iPhone models is an infringement of consumer right and interest, including the right to satisfaction and the right to information.
"When the consumers buy these products from Apple, they should be guaranteed these interests," Li said, "if they are compromised then customer have the right to lawsuit."
The lawsuit that Apple is facing in the US is a class action, but according to Li, Apple is more likely to face lawsuit filed by the China Consumer Association, which can propose the lawsuit as a public interest litigation.
However, Li noted that as the Chinese legal system tends to determine the amount of compensation based on the loss inflicted rather than as a way of punishment and deterrence, the compensation for Chinese consumers might take a longer time to determine, and it will also be "a considerable amount" given the size of the market, Li said.
According to a report by businesstimechina.com, China is one of the biggest market for iPhones. In 2018, total shipments of iPhones in China reached 43.65 million, accounting for 13.9 percent of the global shipments.
"Although it is too early to say whether the Chinese customers will get a compensation from Apple as their US counterparts did, it will pose a high risk on Apple's reputation if the lawsuit is filed," Li said.
Apple, the smartphone giant has agreed on a settlement of up to $500 million in the US, with each affected customer entitled to approximately $25, according to a report by the Reuters. The company had been accused of degrading the performance of older models to boost upgrades to new models and installation of new batteries.
Legal experts told the Global Times that the large number of Chinese customers should also be entitled to its compensation, but noted the process might differ from the US.
Li Min, a senior partner with Shanghai Hansheng Law Offices, told the Global Times on Tuesday that the deliberate slowing down in older iPhone models is an infringement of consumer right and interest, including the right to satisfaction and the right to information.
"When the consumers buy these products from Apple, they should be guaranteed these interests," Li said, "if they are compromised then customer have the right to lawsuit."
The lawsuit that Apple is facing in the US is a class action, but according to Li, Apple is more likely to face lawsuit filed by the China Consumer Association, which can propose the lawsuit as a public interest litigation.
However, Li noted that as the Chinese legal system tends to determine the amount of compensation based on the loss inflicted rather than as a way of punishment and deterrence, the compensation for Chinese consumers might take a longer time to determine, and it will also be "a considerable amount" given the size of the market, Li said.
According to a report by businesstimechina.com, China is one of the biggest market for iPhones. In 2018, total shipments of iPhones in China reached 43.65 million, accounting for 13.9 percent of the global shipments.
"Although it is too early to say whether the Chinese customers will get a compensation from Apple as their US counterparts did, it will pose a high risk on Apple's reputation if the lawsuit is filed," Li said.
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