Google Ordered to Pay $425 Million in Privacy Lawsuit

In a landmark decision, a US federal court has told Google to pay $425 million for breaching users' privacy. The lawsuit, brought by a group of users, claimed that Google continued to collect data from millions of users even after they had disabled a tracking feature in their accounts. This feature, known as Web & App Activity, was supposed to offer users control over their data, but the plaintiffs alleged that Google accessed their mobile devices to collect, save, and use their data in violation of its privacy assurances. The users had initially sought over $31 billion in damages.

Google has expressed its intention to appeal the ruling, arguing that the decision misunderstands how its products operate. A spokesperson for the company stated that Google's privacy tools are designed to give users control over their data and that the company respects users' choices when personalization features are turned off. Despite this, the jury found Google liable for two out of three claims of privacy violations, although it did not conclude that the company had acted with malice.

The class action lawsuit covers approximately 98 million Google users and 174 million devices, highlighting the vast scope of the issue. The plaintiffs argued that Google's data collection practices extended across hundreds of thousands of smartphone apps, affecting companies such as Uber, Lyft, Alibaba, Amazon, and Meta's platforms like Instagram and Facebook. Google maintains that when users disable Web & App Activity, businesses using Google Analytics may still collect data but in a way that does not identify individual users, thereby honoring privacy choices.

In a separate legal development, Google's parent company Alphabet saw its shares rise by over 9% following a ruling by a US federal judge. The judge determined that Google would not need to sell its Chrome web browser but must share information with competitors. This decision emerged from a lengthy legal battle concerning Google's dominance in online search and its position as the default search engine on various products, including those from other companies like Apple.

Meanwhile, Google faces another competition case overseen by District Judge Leonie Brinkema, who previously ruled that Google holds a monopoly in advertising technology. This case is set to continue with a trial aiming to find remedies. These legal challenges underscore the ongoing scrutiny of Google's business practices and their broader implications for competition and privacy in the tech industry.