“Batterygate” is nothing new, and it has plagued Apple for many years. However, recent legal developments in this area may have far-reaching effects for a wide range of tech companies. Consumers have shown that they have absolutely no patience for electronic devices that slow down with age, and many companies face accusations of “planned obsolescence.” This is the concept that electronic devices today are intentionally built to fail within a few years. According to recent allegations, companies are engaging in this behavior to keep their profit margins as high as possible. There is also a growing demand for the “right to repair” electronic devices, particularly within the European Union.

Apple Starts Paying Out Batterygate Settlements

Although tech giants like Apple often seem unassailable, a recent development shows that even these companies may be held accountable for something as innocuous as a slow battery. On August 15, 2023, it was reported that Apple was beginning to pay its customers for slowing performance and causing older batteries for iPhones to become obsolete. This is part of a $500 million settlement that was recently awarded to consumers in a class-action lawsuit.

At the center of this lawsuit was an unusual allegation — that it was not, in fact, a hardware issue but rather a software issue that caused the slowdown. The plaintiffs argued that a software update intentionally caused older phones to start slowing down. The implication, of course, is that these software updates were meant to encourage users to ditch their old hardware and instead purchase new phones. The benefit to Apple would be obvious if these allegations are true. Ultimately, Apple has agreed to pay out the settlements, which means that it will not admit any wrongdoing while still reimbursing the consumers for the alleged issue.

Consumers who purchased pre-2018 phones may be eligible to receive a settlement for their losses. The specific issue in question is something called “software throttling,” which involves causing lagging performance if the update detects an older battery. In contrast to the allegations, Apple itself argued that this measure was meant to extend the lifespan of phones rather than reduce it. Those who file a claim can expect to receive roughly $70 from Apple as part of the settlement. Of course, it all depends on the number of claims that are submitted to Apple.

A Growing Demand for the Right to Repair in Europe

Amidst this development is a growing demand for the so-called “right to repair,” especially in places like Europe. Consumers argue that Apple’s Batterygate is just one aspect of a larger trend that allows tech giants to engage in deceptive behaviors. One of the most common complaints against Apple is that they only revealed that they were engaging in software throttling after people started noticing lagging performance. But this is not the only complaint against Apple. Other consumers point out that it is both difficult and expensive to repair iPhones without relying on Apple’s own lucrative repair service. Even a part worth less than a dollar may cost hundreds of dollars to replace due to inflated repair fees.

The European Union has apparently listened carefully to these concerns, and they recently passed a new law that will require all smartphones, laptops, and tablets to include removable batteries within just a few years. This law has already passed, so it is essentially a forgone conclusion. All tech manufacturers will need to figure out how they will add removable batteries within just a few smartphone generations. This may revolutionize the tech world, making it easier for consumers to repair or upgrade their batteries without replacing the entire device. The “right to repair” also applies to other components, such as screens or cables within the phone. The law specifically states that the average person should have the capability to make these replacements without using complex tools or knowledge.

While consumers will certainly benefit from this new change, manufacturers may struggle to adapt. Various observers have pointed out that due to the size of the European market, it does not make sense to manufacture separate smartphones for that specific consumer base. This would involve creating separate machinery and manufacturing techniques, adding to the cost of production and pushing profit margins even further down. These experts argue that most manufacturers will simply change all of their devices to include removable batteries, whether they are sold in North America, Asia, Europe, or any other market. While that might be a very pragmatic approach to the battery fact pattern, there are other lessons that can be learned. Ther is a natural tension that exists between Product price, Product functionality, and Product durability, while the battery fact pattern discussed herein makes sense, who among us have no considered the ease and flexibility of upgrading an Android phone, vs.. The ease of use and common user interface market acceptance offered with an i-Phone? These sorts of market-based trade-offs may change for batteries, but the underlying issue will continue to swirl and pull us in many different directions as they are applied to other areas of the marketplace.

Those who fail to adapt to this coming change may eventually fall behind, and the tech industry has proven to be a merciless environment for companies that struggle for even a few quarters. History is littered with tech companies who have gone bankrupt because of their inability to “roll with the punches.” And, as we see here the outcome may not be simply left to private corporate economic trade-offs.

It is also worth pointing out that savvy consumers may go out of their way to purchase European smartphones if numerous models are offered. After all, why purchase a phone that will lose battery life in a few years when you can instead purchase a phone that could theoretically last a lifetime with regular battery replacements? This means that even if companies offer a model with a permanent battery, these items may sit on shelves for years with zero demand.

Where Can I Find a Qualified Tech Lawyer?

If your tech company is facing allegations of planned obsolescence associated with batterygate, the right to repair, or any other related issue, it may help to consider your legal options alongside a qualified technology lawyer.

Choose John P. O’Brien today and book a consultation to discuss these issues in more detail. Potential new initiatives in the European Union could have serious effects on all tech companies that make battery-powered products, and it makes sense to plan for this new legislation sooner rather than later. Even if you are not currently facing legal issues related to this subject, making the proper changes to your business today could provide you with an advantage over the competition. Reach out today to get started.