A federal jury in San Francisco ordered Alphabet’s Google on Wednesday to pay $425 million after being found liable for invading users’ privacy by continuing to collect data from millions of users who had switched off a tracking feature in their Google accounts.
The decision follows a trial that focused on allegations that, over an eight-year period, Google accessed users’ mobile devices to collect, save, and use their data in violation of privacy assurances linked to its Web & App Activity setting.
Plaintiffs in the class-action case had originally sought more than $31 billion in damages, but the jury awarded far less. Jurors found Google liable on two of the three claims of privacy violations brought by the plaintiffs but said the company had not acted with malice, shielding it from any punitive damages.
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A Google spokesperson confirmed the verdict, though the company has consistently denied any wrongdoing.
How Google Collected the Data
The lawsuit, filed in July 2020, alleged that Google continued to collect user data even when the Web & App Activity setting was turned off. The collection occurred through relationships with apps such as Uber, Venmo, and Meta’s Instagram, which rely on Google’s analytics services.
At trial, Google defended its practices, saying the data collected was “nonpersonal, pseudonymous, and stored in segregated, secured, and encrypted locations.” It insisted the data was not linked to individual Google accounts or identifiable users.
U.S. District Judge Richard Seeborg had certified the case as a class action covering about 98 million Google users and 174 million devices, underscoring the vast scale of the affected group.
Not Google’s First Privacy Scandal
This ruling adds to a growing list of legal challenges around Google’s data practices. Earlier this year, the company agreed to pay nearly $1.4 billion in a settlement with Texas over alleged violations of the state’s privacy laws.
In April 2024, Google also agreed to destroy billions of data records connected to users’ private browsing activities to resolve a lawsuit that accused it of tracking people who believed they were browsing in “Incognito” mode.
The latest verdict reinforces long-standing concerns that Google’s dominance in data-driven advertising has consistently collided with consumer privacy expectations — and often, the courts.
A Pattern of Privacy Fights
Google’s legal woes echo past landmark privacy disputes involving tech giants. In 2019, Facebook (now Meta) agreed to a record $5 billion settlement with the U.S. Federal Trade Commission over mishandling user data in the Cambridge Analytica scandal. Similarly, Yahoo faced lawsuits after failing to protect users in the largest known data breach in history, affecting 3 billion accounts.
While Google’s $425 million penalty is smaller in comparison, it underscores the increasing willingness of courts to hold Big Tech accountable for opaque data practices. It also highlights the challenge for companies whose core business models depend heavily on data collection and targeted advertising.
Analysts note that although the $425 million payout is a significant penalty, it is financially “manageable” for Google given its enormous scale. In the most recent quarter, Google’s parent company, Alphabet, reported $84 billion in revenues, meaning the damages represent a fraction of its earnings. Yet, the legal and reputational implications could be far more costly. The ruling reinforces concerns that Google’s assurances to users cannot always be taken at face value, feeding into a broader narrative of distrust over Big Tech’s handling of personal data.
Privacy advocates argue that such cases chip away at Google’s credibility, especially at a time when regulators in both the United States and Europe are tightening oversight of data practices.
The jury’s decision may embolden further lawsuits and regulatory scrutiny. Google continues to face a wave of privacy-related cases across U.S. jurisdictions and abroad, especially as lawmakers in Europe and the U.S. debate tighter rules for data protection in the AI era.