Google Forced to Pay $425M After Privacy Promises Crumbled in Court

A U.S. federal jury has ruled against Google, ordering the tech giant to pay $425.7 million for allegedly breaching the privacy of millions of users by collecting data from their smartphones even after they had disabled tracking through the Web & App Activity setting in their accounts. The verdict follows a class-action lawsuit filed in July 2020 by a group of users who argued that Google violated its own privacy assurances by continuing to track user activity through third-party apps, despite users turning off personalization features [1]. The plaintiffs sought over $31 billion in damages, but the jury found Google liable on two of three privacy claims, though it ruled the company did not act with malice [1].

The lawsuit covers approximately 98 million Google users and 174 million devices, with plaintiffs alleging that data collection extended to hundreds of thousands of apps, including those from Uber, Lyft, Alibaba, Amazon, and Meta's Instagram and Facebook [1]. Google has contested the ruling, asserting that it honors users' privacy choices and that data collected through third-party apps using Google Analytics is anonymized and non-identifiable. A company spokesperson stated, “Our privacy tools give people control over their data, and when they turn off personalization, we honor that choice” [2].

During the trial, Google defended its practices by arguing that the data collected was “nonpersonal” and “pseudonymous,” stored in secure and encrypted locations [2]. The ruling, however, challenges this stance, highlighting inconsistencies between Google’s privacy assurances and its operational practices. In addition to this case, Google has faced multiple privacy-related lawsuits in recent months, including a $1.375 billion settlement with the state of Texas over unauthorized collection of biometric data such as face geometry and voiceprints [2].

This latest ruling adds to a broader regulatory and legal pressure on Google, particularly in the realm of digital privacy and competition. Separately, a U.S. federal judge ruled this week that Google need not sell its Chrome web browser but must share information with competitors and eliminate exclusive contracts [1]. The case is part of an ongoing antitrust investigation into Google’s dominance in online search and digital advertising. In another related case, a federal judge has already ruled that Google maintains a monopoly in advertising technology, with remedies to be determined in a trial later this month [1].

The company’s legal team plans to appeal the latest verdict, reflecting the growing complexity of balancing innovation with user privacy in an increasingly regulated digital environment. As courts continue to scrutinize tech firms over data practices and market dominance, this case serves as a significant legal precedent for how user consent and privacy assurances will be interpreted and enforced. The outcome may influence future regulatory actions and corporate accountability in the tech sector.

Source:

[1] Google told to pay $425m in privacy lawsuit (https://www.bbc.com/news/articles/c3dr91z0g4zo)

[2] Google told to pay $425m for breaching millions of users' privacy (https://www.aljazeera.com/economy/2025/9/4/google-told-to-pay-425m-for-breaching-millions-of-users-privacy)