Google to pay Texas $1.4 billion after data privacy lawsuit

After a prolonged data privacy lawsuit that made global headlines, Google has agreed to pay a whopping $1.375 billion settlement to the state of Texas. The settlement in principle will close allegations that Google violated the privacy of users in Texas by illegally using their data.

The attorney general for Texas, Ken Paxton, said that the agreement would bring two lawsuits to a close in relation to three products that allegedly violated customer protection laws in the state, by illegal use of data analysis.

Big Tech Law Applies in Texas

In a statement, Paxton said that Big Tech would not be above the law in Texas. He added that Google had been shown to secretly track citizens’ movements, their facial geometry, voiceprints, and private searches through their technology products and services.

Full details of the statement have not yet been disclosed. The Texas attorney general has given no details about how the settlement money will be used. The case spanned areas such as location history, Incognito mode, and biometric data. Google admitted no wrongdoing and said that the settlement would close a range of old claims that related to policies long since updated.

The Challenges of Data Law for Businesses

The issues of customer data management and privacy are huge for businesses around the world, many of whom are now using services from a third-party data analysis company, such as https://shepper.com/, to get around these complex issues.

Google was sued twice by Paxton, when he alleged that the company had illegally collected residents’ data without obtaining their necessary consent. He further alleged that Google tracked user locations after this feature had been disabled, whilst misleading users about how private browsing Incognito mode worked.

No product changes will be required as a result of the settlement, according to Google. Last year, Meta Platforms agreed to pay $1.4 billion to settle a separate case with Paxton over allegations relating to the unlawful collection and use of facial recognition data.

Similar cases are still progressing through local courts around the world, reflecting the broader data challenge of big tech.

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