Fallout From Apple's Decision to Slow Phones Just Got Worse

SEC and the Justice Department are investigating
By Newser Editors and Wire Services
Posted Jan 30, 2018 6:10 PM CST
Feds May Go After Apple for Slowing Older Phones
The Apple iPhone X sits on display at an Apple Store.   (AP Photo/Charles Rex Arbogast)

US authorities are investigating Apple's slowing of older iPhones, according to published reports. The Wall Street Journal and Bloomberg reported Tuesday that the Department of Justice and the Securities and Exchange Commission are investigating whether Apple violated securities laws. In December, Apple apologized for the slowdown after a blogger's tests revealed the secretive practice. The Journal adds some context, noting that regulators often open such investigations that result in no charges.

One area that investigators appear to be interested in is whether the company misled investors about how its older phones were performing, according to Bloomberg. Apple has previously been rebuked by lawmakers, and it faces a French probe and a slew of lawsuits that allege the company aimed to juice sales of newer models. Apple shares fell 0.6% to close at $166.97 and are down 7% since Thursday, per the AP. Wall Street is also worried about weak demand for its flagship iPhone X. The Justice Department and SEC declined comment. Apple did not respond to a request for comment.

(More Apple stories.)

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