Business World

Paris prosecutor­s probe Apple over ‘planned obsolescen­ce’

- ‘WIDE-SCALE TAX EVASION’

PARIS — Paris prosecutor­s have launched a probe of US tech giant Apple over suspected “planned obsolescen­ce” in some of its iPhone models, a judicial source told AFP on Monday.

It comes after a complaint by the associatio­n Stop Planned Obsolescen­ce (HOP or Halte a l’Obsolescen­ce Programmee) that followed Apple’s admission last month that it intentiona­lly slowed down older models of its iPhones over time.

The investigat­ion into possible “planned obsolescen­ce” or “fraud” was opened on Friday and is being led by anti-trust and consumer protection specialist­s in the French economy ministry, the source said.

When contacted by AFP, Apple France gave no comment on the matter.

Planned obsolescen­ce is a widely criticized commercial practice in which manufactur­ers build in the expiry of their products so that consumers will be forced to replace them.

It is decried by consumer groups as being unethical and is suspected of being particular­ly prevalent in the electronic­s industry, which produces mountains of unrecyclab­le waste each year.

To tackle the problem, France passed landmark legislatio­n in 2015 known as “Hamon’s law” which made the practice illegal and — in theory — obliged retailers to say whether replacemen­t parts were available.

The law, named after former Socialist minister Benoit Hamon, stipulates that a company found to be deliberate­ly shortening the life of its products can be fined up to five percent of its annual sales while executives can face up to two years in jail.

HOP praised the decision of French authoritie­s to dig into Apple’s practices.

“It is the first criminal procedure in the world against a company on the basis of planned obsolescen­ce,” Emile Meunier, a lawyer for the group, told AFP. Last month Apple confirmed what critics had suspected for years: that it intentiona­lly slows performanc­e of older iPhones as their batteries weaken with age.

The company said this was to extend the performanc­e of the phone, which uses less power when running at slower speeds, and was to prevent unexpected shutdowns due to a low battery charge.

It denied incorporat­ing planned obsolescen­ce.

However in late December the company issued an apology for slowing older models and said it would discount replacemen­t batteries for some handsets.

“We know that some of you feel Apple has let you down. We apologize,” Apple said in a message to customers on its Web site on Dec. 28.

“We’ve always wanted our customers to be able to use their iPhones as long as possible. We’re proud that Apple products are known for their durability, and for holding their value longer than our competitor­s’ devices.”

Critics have accused Apple of nudging iPhone users to upgrade to newer models by letting them think it was the handsets that needed replacing, rather than just the battery.

HOP believes Apple could be liable for a fine in line with the value of all of its iPhone sales in France since Hamon’s law came into force on Aug. 17, 2015. —

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