Google Ordered to Pay $425m for Privacy Breach
In a landmark ruling, a US federal court has slapped Google with a $425m (£316.3m) fine for violating users’ privacy rights. The tech giant was found guilty of collecting data from millions of users even after they had disabled a tracking feature in their Google accounts.
Background of the Case
The verdict comes after a group of users took legal action against Google, alleging that the company accessed their mobile devices to gather, store, and utilize their data without consent. The users claimed that Google’s actions violated the privacy assurances in its Web & App Activity setting, leading to a lawsuit seeking damages exceeding $31bn.
Google’s Response
A Google spokesperson responded to the ruling, stating, “This decision misunderstands how our products work, and we will appeal it. Our privacy tools give people control over their data, and when they turn off personalization, we honor that choice.”
Verdict and Lawsuit Details
The jury found Google liable for two out of three claims of privacy violations but determined that the company had not acted maliciously. The class action lawsuit, representing approximately 98 million Google users and 174 million devices, was initiated in July 2020.
Implications for Google
Aside from the financial penalty, Google is facing increased scrutiny over its data collection practices. The company’s dominance in online search has prompted regulatory actions, with recent court decisions impacting its operations.
Market Impact and Future Challenges
Following the ruling, shares in Google’s parent company Alphabet surged by more than 9%. Despite the legal setbacks, Google is allowed to retain its Chrome web browser but must adhere to new regulations, including sharing search data with competitors.
As Google navigates these legal challenges, the tech giant faces ongoing competition cases and regulatory oversight. The outcomes of these legal battles will shape the future of Google’s operations and its impact on the digital landscape.
