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A United States federal court has ordered Google to pay $425 million (about £316.3m) for secretly collecting data from millions of users even after they had switched off a tracking feature in their accounts.
The judgment came after a group of users dragged the technology giant to court, accusing it of accessing mobile devices and harvesting private information despite privacy assurances on its Web & App Activity setting. The lawsuit, filed as a class action in July 2020, covered about 98 million Google users and 174 million devices. The plaintiffs argued that the company’s collection extended to hundreds of thousands of smartphone applications, including those belonging to big companies like Uber, Lyft, Alibaba, Amazon, Instagram, and Facebook.
The users had initially sought more than $31 billion in damages but the court settled on $425 million after ruling that Google violated two out of three claims of privacy breaches. The jury, however, noted that the company had not acted with malice.
Reacting to the ruling, David Boies, one of the attorneys representing the users, said the team was satisfied with the outcome. “We are, obviously, very pleased with the verdict the jury returned,” he stated.
Google, on its part, disagreed with the decision and vowed to challenge it in court. In a statement, the company said: “This decision misunderstands how our products work, and we will appeal it. Our privacy tools give people control over their data, and when they turn off personalisation, we honour that choice.”
The tech giant further explained that when Web & App Activity is turned off, businesses that use Google Analytics may still collect data on site and app usage. However, it insisted that this data does not reveal the identity of individual users and still respects privacy choices.
The lawsuit raised global concerns about how tech firms handle user information and the limits of consumer control over data in an age where digital privacy is becoming increasingly important. The case also touched on Google’s influence across different industries since many businesses depend on its data-driven services to monitor customers and improve engagement.
In a separate development this week, Google’s parent company, Alphabet, saw its shares rise by more than 9% on Wednesday after another ruling by a US federal judge. District Judge Amit Mehta ruled that Google would not be forced to sell its popular Chrome web browser, a demand earlier made by the US Department of Justice (DOJ). However, the company was ordered to share certain information with competitors and stop signing exclusive contracts that limit fair competition in the search engine market.
The case before Judge Mehta had centred on Google’s dominance as the default search engine on Android phones, Chrome browser, and even Apple devices. The DOJ had pushed for tougher remedies, including the sale of Chrome, but the judge instead opted for restrictions to reduce Google’s market power without breaking up the company.
Google is still facing another competition case, this time under District Judge Leonie Brinkema. In April, she ruled that Google holds a monopoly in digital advertising technology, a market worth billions of dollars globally. That case could see the company face additional restrictions or penalties in the coming months.
The privacy judgment and ongoing antitrust battles highlight the growing pressure on major technology firms in the US and across the world. Governments and regulators are now paying closer attention to how tech companies use their power, protect users’ information, and compete fairly.
For millions of Google users, the case serves as a reminder that turning off data settings may not completely stop tech companies from tracking activities. It also raises questions about whether existing privacy laws are strong enough to protect users in today’s digital economy.
As the legal battles continue, both investors and users will be watching closely to see how Google responds to the challenges that threaten its position as the world’s largest search engine and one of the most powerful technology companies.
