A federal jury has ruled that Alphabet’s Google must pay $425 million for violating user privacy by collecting data from millions of users who had explicitly turned off tracking features on their Google accounts. The verdict was delivered on Wednesday after a federal trial in San Francisco that examined allegations spanning an eight-year period.
The class-action lawsuit, filed in July 2020, claimed that Google continued to gather user data despite the Web & App Activity setting being switched off. Plaintiffs argued that Google accessed, collected, and stored data from users’ mobile devices through apps such as Uber, Venmo, and Instagram, which leveraged Google analytics services.
Originally, the users had sought more than $31 billion in damages, but the jury found Google liable on two of the three privacy violation claims. The jury determined that Google did not act with malice, and as a result, the company is not subject to punitive damages, Reuters news report said.
Google’s Response and Appeal
Google spokesperson Jose Castaneda said the company disagreed with the decision, stating, “This decision misunderstands how our products work. Our privacy tools give people control over their data, and when they turn off personalization, we honor that choice.” Google also confirmed plans to appeal the verdict.
Meanwhile, David Boies, attorney for the plaintiffs, expressed satisfaction with the outcome, highlighting the significance of the verdict in holding tech giants accountable for user privacy.
Class Action Scope and Previous Privacy Issues
U.S. District Judge Richard Seeborg certified the case as a class action, covering approximately 98 million Google users and 174 million devices. At trial, Google argued that the data collected was nonpersonal, pseudonymous, and stored in segregated, secured, and encrypted locations, emphasizing that it was not linked to individual user identities.
This verdict adds to Google’s recent privacy-related legal challenges. Earlier this year, Google agreed to a $1.4 billion settlement with Texas over alleged privacy violations. In April 2024, the company also agreed to destroy billions of records of users’ private browsing activities, following a lawsuit concerning tracking of users in Incognito mode.
Implications for User Privacy and Tech Companies
The ruling underscores a growing emphasis on user privacy and accountability in the tech industry. With millions of users relying on clear privacy controls, the verdict signals that companies like Google can face significant legal and financial consequences if they fail to honor privacy settings. It also reinforces the importance for consumers to remain vigilant about how their data is collected and used.
As governments and regulatory bodies continue to scrutinize tech giants, companies worldwide are likely to reassess their data collection practices to comply with stricter privacy laws and protect user trust.
Conclusion
The $425 million jury award against Google marks a major milestone in digital privacy enforcement. While Google plans to appeal, the verdict serves as a stark reminder that user privacy cannot be taken lightly, and legal accountability for violating trust is becoming an unavoidable reality for global technology firms.
Shafana Fazal