Google Fined $425 Million: Jury Finds Smartphone Snooping Violated User Privacy

What Happened: Jury Slaps Google with Massive Fine

Google Fined $425 Million: Jury Finds Smartphone Snooping Violated User Privacy – In a major legal blow to Sundar Pichai’s Google, a federal jury in San Francisco has ordered the tech giant to pay $425.7 million in damages for improperly collecting data from users’ smartphones over nearly a decade. The verdict came after a two-week trial in a class-action lawsuit involving around 98 million smartphones used in the United States between July 1, 2016, and September 23, 2024.

The lawsuit claimed that Google continued to track user activity even when people had turned off privacy settings like Web & App Activity, which are supposed to prevent the company from monitoring browsing and app usage. Despite users believing they had opted out, Google allegedly collected data through third-party apps like Uber, Instagram, and Venmo.

The jury found that Google’s actions violated California privacy laws, and although the plaintiffs had originally sought over $30 billion in damages, the final award amounts to about $4 per affected device.

Privacy at Risk: How Google Collected Data Without Consent

At the heart of the case was a simple but serious issue: user consent. The plaintiffs argued that Google’s privacy tools were misleading. Even when users turned off personalization features, Google allegedly continued to gather data in the background, using it to target ads and boost revenue.

Google defended its practices by saying the data was nonpersonal, pseudonymous, and stored securely. The company claimed it wasn’t tied to specific accounts or identities. However, the jury disagreed, concluding that Google’s assurances were insufficient and misleading.

Lawyers for the users described Google’s behaviour as illegal profiteering, using private data to sell ads tailored to individual interests. This strategy reportedly helped Google earn billions of dollars, all while users believed their privacy was protected.

Legal Fallout: Google Plans to Appeal the Verdict

Following the verdict, Google spokesperson Jose Castaneda stated that the company disagrees with the decision and plans to appeal. He emphasized that Google’s privacy tools are designed to give users control, and that the company honours personalization settings when turned off.

This case adds to a growing list of privacy-related lawsuits against Google. Earlier in 2024, the company agreed to destroy billions of data records linked to users’ private browsing sessions, including those conducted in Incognito mode. In another case, Google paid $1.4 billion to settle claims from the state of Texas over similar privacy violations.

The timing of this verdict is also notable, it came just one day after Google avoided a breakup in a separate antitrust case brought by the U.S. Department of Justice, which targeted its dominant search engine.

What This Means for Users and the Tech Industry

This landmark ruling sends a strong message to the tech world: users will not tolerate hidden data collection. Attorney John Yanchunis, who represented the plaintiffs, said the outcome is a victory for privacy protection and hopes it will push other tech companies to be more transparent.

For everyday users, the case highlights the importance of understanding how privacy settings work and whether they truly protect your data. It also raises questions about corporate accountability, especially when companies profit from personal information without clear consent.

As Google prepares to appeal, the case continues to spark debate about digital rights, data ethics, and the future of user privacy in a world dominated by tech giants.

Also read – Search Giant Slammed: Google Fined ₹314 Crore for Crushing Competition in Australia

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