Google Pays Record $1.4B for Privacy Violations

Google has agreed to pay Texas $1.375 billion to settle allegations of unauthorized data collection and privacy violations, marking the largest settlement ever won by a single state for privacy infringements, according to Texas Attorney General Ken Paxton.

The settlement resolves two lawsuits brought by Texas against the tech giant over its handling of location tracking, incognito searches, and biometric data collection practices. The massive payment dwarfs previous settlements won by other states for similar violations.

Years-Long Legal Battle Ends in Massive Payout

In 2022, Texas sued Google for allegedly tracking users’ private data without proper consent, including their movements, search history, and even biometric information. After aggressive litigation, the preliminary agreement reached on May 9th represents a landmark victory for consumer data rights.

“In Texas, Big Tech is not above the law. For years, Google secretly tracked people’s movements, private searches, and even their voiceprints and facial geometry through their products and services,” Paxton said in a statement following the announcement, according to Reuters.

The settlement amount stands in stark contrast to similar privacy settlements secured by other states, none of which have exceeded $93 million. Even a 40-state coalition previously secured just $391 million from Google for comparable violations.

Settlement Covers Multiple Privacy Complaints

The agreement resolves allegations related to three key areas: Google’s Chrome browser’s incognito mode, location history tracking through Google Maps, and biometric data processing through Google Photos, according to CNBC.

Privacy advocates have long criticized Google’s data collection practices, arguing that the company did not adequately disclose to users how their information was being tracked and used, even when using supposedly private browsing features.

While the financial terms are significant, the settlement does not require Google to admit wrongdoing or liability, nor does it mandate any changes to the company’s products or services.

Google Claims Issues Already Addressed

Google spokesperson Jose Castaneda downplayed the significance of the settlement, stating that it resolves “a raft of old claims, many of which have already been resolved elsewhere, concerning product policies we have long since changed.”

The company maintains that all policy changes related to the allegations had already been announced or implemented prior to the settlement, suggesting the agreement merely formalizes resolutions to past practices.

Google also emphasized that no product changes are required under the terms of the agreement, indicating the settlement is purely financial in nature.

Second Major Tech Settlement for Texas

This is the second massive privacy settlement secured by Texas against a major tech company in less than a year. In July 2024, Meta (formerly Facebook) agreed to pay Texas $1.4 billion to resolve claims related to facial recognition data collection.

The back-to-back billion-dollar settlements cement Paxton’s reputation as an aggressive enforcer against tech companies’ data practices. His office has established what it calls the largest data privacy and security initiative of any U.S. state.

The settlement comes amid broader regulatory scrutiny of Google both in the United States and internationally, with the company facing several antitrust cases that could potentially force structural changes to its business.