Google to Pay Texas $1.4B in Privacy Lawsuit Settlement

Google Reaches $1.375 Billion Settlement with Texas Over Privacy Concerns

A substantial agreement has been reached between Google and the state of Texas, resolving two legal challenges. The settlement amounts to $1.375 billion and addresses allegations concerning the unauthorized collection of user data.

Specifically, the lawsuits claimed Google tracked users’ personal location, searches conducted in incognito mode, and biometric information – including voice and facial data – without obtaining explicit consent.

Lawsuits Filed in 2022

Texas Attorney General Ken Paxton initiated the legal proceedings against Google in 2022. This action follows a similar resolution with Meta, Facebook’s parent company, which agreed to pay a comparable sum last year to settle a lawsuit related to facial recognition technology.

“In Texas, Big Tech is not exempt from legal accountability,” stated Paxton. “Google engaged in the clandestine monitoring of individuals’ locations, private online activity, and even their unique biological characteristics through its various products and services. My office vigorously pursued this case and achieved a favorable outcome.”

Record-Breaking Privacy Enforcement

According to Paxton’s office, this settlement represents the largest financial recovery nationwide achieved by a state attorney general enforcing state privacy laws against Google.

Google's Response

A representative for Google clarified that the company is settling the lawsuits without acknowledging any wrongdoing or accepting liability. Furthermore, the settlement does not necessitate any alterations to its existing products.

“This resolution addresses a collection of older claims, many of which have already been addressed through previous settlements, pertaining to product policies that have been modified some time ago,” explained spokesperson José Castañeda. “We are satisfied to resolve these matters and remain committed to developing strong privacy controls within our services.”

Previous Legal Battles

Google had previously secured some legal victories in these cases. An appeals court, for instance, determined that the company did not have sufficient connections to Texas to warrant litigation within the state.

Initially, Google responded to the lawsuits by asserting that Paxton misrepresented its products, characterizing the claims as “another sensationalized lawsuit.” The company maintained that Google Photos’ facial scanning feature was solely used for organizing similar images and was not utilized for advertising purposes.

Broader Antitrust Context

This settlement occurs alongside significant antitrust rulings that found Google engaged in illegal practices to sustain monopolies in web search and advertising technology. Potential remedies include the divestment of the Chrome browser. (Google has indicated its intention to appeal these rulings.)

Paxton's Political Ambitions

Concurrently, Attorney General Paxton has announced his intention to challenge U.S. Senator John Cornyn in the upcoming midterm elections.

The agreement underscores the increasing scrutiny faced by technology companies regarding data privacy and the enforcement of consumer protection laws.