Google Settles Landmark $5 Billion Privacy Lawsuit: Tech Giant Agrees to Unprecedented Settlement

Tech behemoth Google has recently agreed to a substantial $5 billion settlement in a legal battle centered around allegations that it clandestinely tracked the internet activities of millions of users who believed their online browsing was conducted privately.

The development unfolded as U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, decided to pause a scheduled trial set for February 5, 2024, in the proposed class action lawsuit. This decision followed an announcement by legal representatives of both Google and the consumers, indicating that a preliminary settlement had been reached.

While the specific terms of the settlement remain undisclosed, attorneys on both sides disclosed that they have mutually agreed to a binding term sheet through mediation. They anticipate presenting a formal settlement for court approval by February 24, 2024. The lawsuit, which initially sought a minimum of $5 billion in damages, alleged that Google’s utilization of analytics, cookies, and apps enabled its Alphabet unit to track user activity even when individuals employed Google’s Chrome browser in “Incognito” mode or other browsers in “private” browsing mode.

According to the complainants, this surreptitious tracking transformed Google into an “unaccountable trove of information,” allowing the company to gain insights into users’ social circles, hobbies, preferred foods, shopping habits, and even potentially embarrassing online searches. In August, U.S. District Judge Rogers rejected Google’s attempt to dismiss the lawsuit, emphasizing the unresolved question of whether Google had made a legally binding commitment not to collect user data during private browsing.

The judge referenced Google’s privacy policy and other statements by the tech giant that implied certain limitations on the information it might collect during private browsing sessions. Originating in 2020, the lawsuit covered the activities of “millions” of Google users from June 1, 2016, onward, seeking at least $5,000 in damages per user for alleged violations of federal wiretapping and California privacy laws.

This legal ordeal is just one of several consumer privacy lawsuits that have been directed at major tech companies in recent times. In a separate case earlier this month, it was reported that Google had agreed to a $630 million settlement with its U.S. consumers to resolve a dispute concerning the app distribution policies of the Play Store. Additionally, the company committed to contribute $70 million to a fund that states will utilize, bringing the total settlement figure to a substantial $700 million.

In September, Google reached a tentative settlement in a class action lawsuit filed by U.S. states and consumers. Originating in 2021, this lawsuit underscored Google’s monopoly over app distribution on Android through the Play Store. As a further development in November 2022, Google initiated a pilot of its user choice billing program in the U.S. This program afforded developers the option to employ alternative payment methods for in-app purchases, potentially signaling a shift in the company’s approach to app monetization.