Google has agreed to pay a staggering $1.375 billion to the state of Texas to settle lawsuits regarding unauthorized tracking and data collection practices.
This monumental settlement marks the largest state settlement ever paid by Google over data privacy issues, and it follows previous settlements concerning the company’s data handling practices.
The Unauthorized Tracking and Data Collection
The lawsuit revealed that Google had been tracking users’ geolocation without their consent, even when users had disabled the ‘Location History’ feature.
In addition to geolocation tracking, Google was found to be collecting biometric data, including facial geometry and voiceprints, without obtaining proper consent from users.
The company was also accused of tracking incognito searches and other private user activities, breaching users’ expectations of privacy.
The Record-Breaking Settlement
The $1.375 billion payout is the largest state settlement Google has ever had to pay in connection with data privacy issues.
While this amount may seem modest compared to Google’s total annual revenue of $350 billion, it represents a significant penalty for a company that has faced growing scrutiny over its data collection practices.
In September 2023, Google paid a then-record $93 million settlement over similar allegations, and in November 2022, the company settled a $391 million claim with 40 states over deceptive location data collection.
Statements from Texas Attorney General Ken Paxton
Texas Attorney General Ken Paxton, who led the lawsuit, expressed strong disapproval of Google’s actions.
“For years, Google secretly tracked people’s movements, private searches, and even their voiceprints and facial geometry through their products and services. I fought back and won,” said Paxton.
He emphasized that this settlement sends a clear message that “Big Tech is not above the law.”
The Bigger Picture: Other Tech Settlements
This massive settlement follows a similar case in July 2024 when Meta (formerly Facebook) paid $1.4 billion to settle allegations of unlawful facial recognition data collection.
Both settlements highlight the growing trend of tech companies facing significant financial penalties over privacy violations and the increasing scrutiny on data collection practices.
The Impact on Privacy and Consumer Trust
Attorney General Paxton called the settlement a “major win for Texans’ privacy,” sending a strong signal that companies violating consumer trust will be held accountable.
This settlement is also seen as a major victory for privacy advocates, who have long been concerned about the unchecked power of tech giants like Google to collect vast amounts of personal data without proper consent.
Google’s Response
In a statement to TechRadar Pro, a Google spokesperson said that this settlement resolves a series of older claims regarding product policies that the company has since changed.
“We are pleased to put them behind us and we will continue to build robust privacy controls into our services,” the spokesperson added.
Conclusion
Google’s $1.375 billion settlement with the state of Texas serves as a powerful reminder of the importance of data privacy and the consequences companies can face for violating user trust.
As tech giants continue to come under scrutiny for their data handling practices, this settlement could mark the beginning of more significant accountability measures for the industry as a whole.