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Google has been ordered to pay $425 million after a U.S. federal jury ruled that the tech giant violated users' privacy by collecting data even when a key tracking feature was turned off.
The verdict was delivered on Wednesday in San Francisco federal court, following a trial that focused on Google's handling of its Web & App Activity setting. Plaintiffs alleged that, over an eight-year period, Google continued to access, save, and use data from millions of users who had opted out of tracking.
The class action lawsuit, first filed in July 2020, covers about 98 million Google users and 174 million devices. Initially, users were seeking more than $31 billion in damages, citing privacy violations involving apps such as Uber, Venmo, Instagram, and Facebook, which rely on Google's analytics services.
Attorney David Boies, who represented the plaintiffs, celebrated the outcome, saying, "We are, obviously, very pleased with the verdict the jury returned."
The jury found Google liable on two out of three privacy claims but determined that the company had not acted with malice, which meant there were no punitive damages beyond the $425 million award.
Google strongly denied wrongdoing and announced plans to appeal the ruling.
"This decision misunderstands how our products work," said Google spokesperson Jose Castaneda. "Our privacy tools give people control over their data, and when they turn off personalization, we honor that choice."
At trial, Google argued that any data collected was nonpersonal, pseudonymous, and securely encrypted, emphasizing that it was not directly linked to individual users or their accounts.
This isn't the first time Google has faced scrutiny over privacy practices. Earlier this year, the company paid nearly $1.4 billion to settle allegations that it violated Texas privacy laws. In April 2024, Google agreed to delete billions of records tied to users' private browsing activities following a separate lawsuit involving its "Incognito" mode.
The ruling comes amid broader legal challenges to Google's business practices. Just this week, Alphabet's shares jumped over 9% after a separate federal judge ruled that Google would not be forced to sell its Chrome browser, though it must share search data with competitors to ensure fair competition.
The privacy case highlights the growing tension between big tech firms and regulators, as courts worldwide grapple with data collection and user consent in the digital age.
