Google Ordered to Pay $425 Million in Privacy Lawsuit
Google Ordered to Pay $425 Million in Privacy Lawsuit
A US federal court has ruled that Google must pay $425 million (approx. £316 million) after being found guilty of violating user privacy. The tech giant allegedly collected personal data from millions of users even after they had disabled tracking features in their Web & App Activity settings.
Why Was Google Sued?
The lawsuit, filed back in July 2020, represented nearly 98 million users and covered over 174 million devices. Plaintiffs argued that Google continued to collect and store information from mobile devices despite users turning off activity tracking. This included data from popular apps like Uber, Lyft, Amazon, Alibaba, Facebook, and Instagram.
Court Verdict and Google’s Response
The jury found Google liable on two out of three claims related to privacy breaches but clarified that the company had not acted with deliberate malice. Initially, plaintiffs demanded more than $31 billion in damages.
In response, a Google spokesperson stated: "This ruling misinterprets how our products function, and we plan to appeal. Our privacy tools are designed to give people control, and we respect their choices when personalization is turned off."
Impact on Google and Alphabet
The verdict comes at a time when Google’s parent company, Alphabet, is facing multiple legal challenges in the US. Earlier this week, Alphabet shares rose by over 9% after a judge ruled that Google would not be forced to sell its Chrome web browser. However, the company must share search data with competitors and avoid exclusive contracts to maintain fair competition.
Other Ongoing Legal Battles
Google is also under scrutiny in a separate antitrust case concerning its advertising technology business. District Judge Leonie Brinkema previously declared that Google holds a monopoly in ad tech, with further hearings scheduled later this month to decide on appropriate remedies.
Conclusion
This case marks a significant moment in the ongoing debate over digital privacy and Big Tech accountability. With multiple lawsuits on its plate, Google faces mounting pressure to alter its data collection practices while maintaining user trust and market dominance.
