Italian watchdog bares its gums in Apple and Samsung planned obsolescence case

Italian regulator AGCM has shown its bite is particularly toothless after fining Apple and Samsung €10 million and €5 million respectively over planned obsolescence.

Following a ten-month investigation for unfair commercial practices, the watchdog found the pair guilty, though after months of barking the bite has proven to be as gummy as a 70 year-old Welwyn Garden City pensioner. For many companies the fines would be considered monstrous, but for these two, it will barely register a blip on the financials.

The statement from the AGCM reads as follows:

“As a result of two complex investigations, the AGCM has ascertained that the companies of the Apple group and of the Samsung group have realized unfair commercial practices in violation of the articles. 20, 21, 22 and 24 of the Consumer Code in relation to the release of some firmware updates of mobile phones that have caused serious malfunctions and significantly reduced performance, thereby accelerating the process of replacing them.”

In Samsung’s case, the watchdog believes the company insisted users who had purchased a Note 4 to install the new Android firmware called Marshmallow, which was designed for the Note 7, but failed to inform of serious malfunctions due to the greater stress on the device.

Apple told the owners of various models of iPhone 6 to install the new iOS 10, which was developed for the iPhone7, without informing the greater energy demands of the new operating system and the possible inconveniences, such as sudden shutdowns. To counter these issues, a new update was released without warning that its installation could reduce the speed of response and functionality of the devices.

In a second investigation of Apple, AGCM found the iLeader did not provide consumers with adequate information about some characteristics of the batteries, such as their average life and deterioration, nor the correct procedures to maintain, verify and replace the batteries to preserve the full functionality of the devices.

Just to put the fines into some perspective, it would take Apple approximately 20 minutes to pay off the €10 million fine, while Samsung would take around 16 minutes to pay off its €5 million penalty.

The issue with these fines is the severity. Apple and Samsung have failed in their responsibilities to their customers, and should be punished. However, these are monstrous companies with unthinkably large bank accounts. Fines should be proportional to the size of the company, otherwise fear will not be instilled.

Fines are supposed to act as a deterrent for any wrong-doing in the future. Considering how minor these penalties are in comparison to the annual turnover of Apple and Samsung, what is to stop them from continuing to edge along the line of right and wrong.

Unfortunately this is the current state of play. Regulators can try to protect the consumer, but until they are given the power to effectively and proportionally punish wrong-doers, nothing will change. This is not the last time Apple and Samsung will be caught doing something wrong, and it’s because they are effectively being allowed to get away with it.