Feds looking at Apple tactics
Justice Department, SEC reportedly probe iOS update
The Justice Department and the Securities and Exchange Commission are investigating whether Apple violated securities laws concerning its disclosures about a software update that slowed older iPhone models, according to people familiar with the matter. The government has requested information from the Cupertino company, according to the people, who asked not to be named because the probe is private. The inquiry is in early stages, they cautioned, and it’s too soon to conclude any enforcement will follow. Spokesmen for Apple and the government didn’t immediately respond to requests for comment. The news comes several weeks after Apple admitted to slowing down the performance of older iPhones models as a way to make their internal batteries last longer. Apple released a software update early in 2017 to start throttling older iPhones, but didn’t specify that the action slowed the devices. In December, Apple apologized for not communicating this information and vowed to release another update to mitigate the concern. The slowdowns occur only when the iPhone’s battery reaches a certain, unspecified point of low health, and can be fixed if a user replaces the old battery with a new one. As part of its public apology, Apple cut the prices of battery replacements in its stores to $29, a $50 discount. Apple plans to release an iPhone
software update, called iOS 11.3, in the spring with new features that allow users to monitor the status of their batteries and protect against slowdowns. If users turn off the throttling, older iPhones will be more prone to randomly rebooting, Apple has said. The system affects iPhone 7 models and older, but not the iPhone 8 and iPhone X, according to the company.
After apologizing to customers in December, Apple was sued by consumer advocacy groups and individual iPhone users in a global backlash. Federal government officials, including Sen. John Thune, R-S.D., have also questioned Apple about the slowdowns.
The situation is a selfinflicted black eye on the company, which has been wrestling with some other software-related issues, including processor vulnerabilities that have affected other technology companies and a log-in flaw that allows intruders to access files on Mac computers without a pass code. Apple is delaying some key iPhone and Mac software features planned for release this year to focus on quality improvements.