Google has been ordered to pay $425 million in damages after losing a major privacy lawsuit in the U.S., a verdict that underscores mounting concerns about data collection practices by big tech companies.
The class action lawsuit, filed in July 2020, involved nearly 98 million Google users and 174 million devices. Plaintiffs accused the tech giant of secretly collecting, saving, and using personal data through its Web & App Activity setting, despite assurances that turning it off would protect privacy.
The jury found Google liable on two out of three claims but stopped short of saying the company acted with malice. While users had sought more than $31 billion in damages, the awarded amount marks a significant setback for the firm.
A Google spokesperson said the ruling “misunderstands how our products work” and confirmed plans to appeal, insisting that privacy controls give users real choice. According to the company, when personalization is turned off, Google Analytics may still collect some usage data, but it is not tied to individual identities.
The lawsuit alleged Google’s practices extended across hundreds of third-party apps, including Uber, Lyft, Amazon, Alibaba, Instagram, and Facebook.
This ruling comes during a critical period for Google. Earlier this week, a U.S. federal judge ruled the company would not be forced to sell its Chrome web browser but must share search data with competitors and avoid exclusive contracts that cement its dominance. The decision triggered a more than 9% jump in Alphabet’s stock price.
Google also faces a separate trial over its alleged monopoly in advertising technology, overseen by District Judge Leonie Brinkema. Remedies in that case are expected later this month.
As regulators intensify scrutiny, Google finds itself balancing between defending its business model and restoring user trust in its privacy protections.
