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Italian antitrust authorities fined Apple and Samsung, alleging that phone manufacturers had pressured customers to download software updates, which led to device malfunctions, pushing them finally to buy new products.
The Italian Competition Authority (ICA) said in a press release on Wednesday that it had fined Samsung and Apple the maximum amount set for the scope and severity of their unfair business practices. The antitrust body imposed a fine of 5 million euros (about $ 5.7 million) on Samsung, and Apple a $ 10 million fine (about $ 11.4 million). The fine imposed by Apple included a second penalty for allegedly misinforming customers about the lithium batteries used in the iPhones, including their average duration and deterioration factors, as well as how customers were to service them. replace them to preserve the full functionality of their device.
The antitrust agency said companies had urged consumers to download software updates that "caused serious malfunctions and significantly reduced their performance, thus accelerating their replacement with newer products." The ACI also stated that "asymmetric information" existed between consumers. and manufacturers, leaving device owners without the necessary know-how to restore the full capacity of their phone.
ACI said its investigations targeted Samsung's Note 4 and Apple's iPhone 6.
A woman watches a news article on a Samsung Electronics Co. smartphone while walking through the central business district of Sydney, Australia on Thursday, August 13, 2015.
Brendon Thorne / Bloomberg
Last year, Apple acknowledged that its software was slowing down the old iPhone as its batteries age. Lithium-ion batteries lose their effectiveness over time and are less able to hold a charge, which can cause the device to shut down.
Apple said it had changed its software last year for the iPhone 6 models to "improve" power management during peak workloads, so that it could be easier to use. avoid unexpected stops. The company said that power management may go unnoticed, but in some cases users may have longer lead times. applications and other performance reductions. In December, the company said it would never intentionally shorten the life of its products or degrade the user experience to push customers to buy new phones.
Earlier this year, Apple said it had received questions from "some government agencies" about the software update that was slowing older iPhones, but was not referring to any particular agency. Bloomberg News announced in January that the Ministry of Justice and the Securities and Exchange Commission had asked Apple for more information on the software update to determine whether Apple had violated securities laws.
At the height of the controversy surrounding Apple's batteries last year, Samsung told the Phone Arena website that it does not slow down phones with older batteries.
Samsung said Wednesday in a statement to the Washington Post that he was "disappointed" with the ICA decision, which should be the subject of an appeal. "Samsung has not released any software updates that reduce Galaxy Note 4 performance. Samsung, on the other hand, has always released software updates that give our customers the best possible experience. "
Apple did not immediately respond to a request for comment.
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