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Jury Rules Against Google in Major Privacy Battle

A federal jury in San Francisco has ordered Google, owned by Alphabet Inc., to pay $425 million in damages for violating user privacy. The decision stems from allegations that Google secretly tracked and stored personal data from millions of users over an eight-year period, even after they had explicitly turned off a key tracking feature in their Google account settings.

The ruling marks a significant win for privacy advocates and sets a precedent for how tech giants can be held accountable for their data practices. Plaintiffs originally sought more than $31 billion in damages, highlighting the scale of alleged privacy violations.

How the Privacy Breach Happened

The case focused on Google’s Web & App Activity setting, which many users believed disabled personalized tracking. However, the lawsuit revealed that Google continued to gather data from third-party apps such as Uber, Venmo, and Instagram, using its analytics services.

According to the plaintiffs, this data collection included location history, app usage, and browsing behavior — all of which were stored and leveraged by Google, contradicting its public assurances.

In response, Google argued that the data was “nonpersonal, pseudonymous, and encrypted”, claiming it was never directly tied to a user’s identity or Google account. The jury, however, found the company liable on two out of three claims brought forward, though it did not find evidence of malice, meaning punitive damages were not awarded.

The Scale of the Case

U.S. District Judge Richard Seeborg certified the lawsuit as a class action, covering nearly 98 million Google users and 174 million devices. This made it one of the largest digital privacy cases in U.S. history.

David Boies, lead attorney for the plaintiffs, described the verdict as a long-overdue recognition of consumer rights, saying his clients were “obviously very pleased.”

Google, meanwhile, plans to appeal the ruling. A company spokesperson, Jose Castaneda, defended Google’s practices, stating: “This decision misunderstands how our products work. Our privacy tools give people control over their data, and when they turn off personalization, we honor that choice.”

A Pattern of Privacy Settlements

This is not the first time Google has faced intense scrutiny over privacy. Earlier in 2024, the company agreed to destroy billions of browsing records to settle claims it tracked users in Chrome’s “Incognito Mode,” despite assurances of private browsing.

Additionally, Google paid $1.4 billion to the state of Texas earlier this year over alleged violations of state privacy laws — another signal that regulators and courts are increasingly unwilling to accept vague explanations of data collection.

What This Means for Users and Tech Companies

The $425 million verdict is among the largest privacy-related damages awarded against a tech company in recent history. It underscores the growing legal risks faced by firms that monetize user data while promising control and transparency.

With regulators worldwide tightening privacy frameworks and consumers becoming more aware of how their data is used, this case could influence how companies design their data policies moving forward.

For Google, the verdict adds to mounting legal and financial pressure as it navigates not only antitrust probes but also heightened global scrutiny of its advertising and data practices.