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UK lawsuit accusing Apple of throttling the performance of older iPhones

Gs paper-4

Syllabus: Values and Ethics in Public Administration – Corporate Governance



Gustin Guttman, a consumer rights campaigner in the United Kingdom, is launching a class-action suit against Apple seeking damages of around $935 million for throttling the performance of some of the older versions of the iPhone.

The suit claims that Apple abused its market dominance to engage in exploitative and unfair commercial practices.

<strong>Corporate Ethics </strong>

What is Corporate Governance ?

Is is a set of systems, processes, and principles which ensure that a company is governed in the best interest of all stakeholders. It is about promoting corporate fairness, transparency, and accountability.

Examples of Corporate Scandals in India: Sahara Scandal, Saradha Group Chit Fund Scam, etc

Also In News regarding Corporate Governance:

SpaceX fires several employees over a letter criticising Elon Musk’s behavior – this shows a lack of transparency and poor management of the company towards its employees.


Ethical Issues Raised:

  • Lack of transparency and Disclosure- Instead of doing the honorable and legal thing by their customers and offering a free replacement, repair service, or compensation, Apple instead misled people by concealing a tool in software updates that slowed their devices by up to 58%.
  • Apple failed to disclose the throttling to users beforehand because the company wanted to hide the inability of old iPhone batteries to keep up with the new requirements that the manufacturer had placed on them.

Why the suit is important?

Dominant companies will re-evaluate their business models and refrain from this kind of conduct leaning more towards Social responsibility and Ethical Standards.


Current Affairs

Source: Indian Express