UPDATED 14:55 EDT / OCTOBER 24 2018

APPS

Italy’s antitrust watchdog fines Apple and Samsung for slowing users’ phones

Italy’s antitrust watchdog today fined Apple Inc. and Samsung Electronics Co. Ltd. over allegations that they used software updates to slow down handsets, thereby potentially pushing some consumers to buy new models.

The issue of planned obsolescence in the mobile industry entered the spotlight last year when Apple admitted to throttling older iPhones. The company said that the practice was intended to lower the risk of abrupt device shutdowns related to dated, undercharged and cold batteries. Following the public outcry, the company apologized and slashed the cost of battery replacements. 

Today’s ruling orders Apple to pay a 5 million euro, or $5.7 million, the penalty for the performance reductions. Italian antitrust officials have also decided to levy a second 5 million euro fine against the company for failing to give customers guidance on how to maintain and replace iPhones batteries properly.

Samsung, in turn, has received just a single $5 million penalty over similar processor-throttling allegations leveled against it by Italian consumer groups. Antitrust officials assert that the company asked owners of the Note 4, a phablet released in 2014, to download an Android update intended for the newer Note 7 and slowed down the older model.

The ruling reportedly marks the first occasion that Samsung has come under criticism for reducing its mobile devices’ performance. If Apple’s situation is any indication, the decision may lead to further scrutiny. 

Italy’s investigation of the planned obsolescence accusations against the iPhone maker came after French authorities launched a similar inquiry in January that’s still ongoing. Stateside, the Department of Justice and Securities and Exchange Commission have reportedly launched their own investigations, while consumer groups are pursuing a class-action lawsuit over the matter. 

Samsung may not come under as much fire as Apple judging by the fact that it got away with a much smaller fine in Italy. The update cited in the ruling affected only one device, whereas Apple’s patches slowed down four different iPhone models. But the penalty could theoretically still trigger further action in other jurisdictions given that Samsung is the world’s leading handset maker.

Samsung dismissed the conclusions of today’s ruling and said it would file an appeal. “Samsung did not issue any software update that reduced the Galaxy Note 4’s performance,” the company said. “In contrast, Samsung has always released software updates enabling our customers to have the best experience possible.”

Photo: Apple

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